Global reinsurers Munich Re and Swiss Re have set stronger profit targets for next year amid an outlook for supportive market conditions.

Swiss Re CEO Andreas Berger says property and casualty reinsurance pricing is expected to remain strong, an elevated risk environment is driving demand, commercial insurance pricing is plateauing at attractive levels, and life and health reinsurance is seeing favourable US mortality experience.

“This is supported by a significant positive contribution from investment income,” he said.

“With a continued focus on disciplined underwriting and costs, Swiss Re is well placed to benefit from this conducive outlook.” 

Swiss Re is aiming for group net income of more than $US4.4 billion ($6.9 billion), with a P&C reinsurance combined operating ratio of less than 85%. It is targeting life and health reinsurance net income of $US1.6 billion ($2.5 billion), and a corporate solutions combined operating ratio of less than 91%.

Munich Re is aiming for an overall net profit of €6 billion ($9.9 billion) and group insurance revenue of €64 billion ($105.6 billion), based on international financial reporting standards.

In the reinsurance business, it expects €5.1 billion ($8.4 billion) net profit and revenue of €42 billion ($69.3 billion), with a combined operating ratio of 79% in P&C reinsurance and 90% in global specialty insurance.

“In an ongoing favourable market environment, Munich Re will continue to leverage its strong market position,” the company says.

Munich Re will release financial figures for this year on February 26, with Swiss Re delivering its results on February 27.