Munich Re Targets Net Profit of €6 Billion ($6.3 billion) for 2025

Munich Re is aiming for an IFRS net profit of €6 billion (US$6.3 billion) in 2025 as a result of “consistently good operational performance in all business segments.”

It also expects good underwriting profitability with a combined ratio of 79% in property/casualty reinsurance and 90% in Global Specialty Insurance (GSI), the latter of which will become a separate IFRS reporting segment from 2025. (A combined ratio below 100% indicates underwriting profits).

Munich Re expects group insurance revenue to reach €64 billion ($67.2 billion) in 2025, and its return on investment to improve to above 3.0%.

In its reinsurance business, Munich Re anticipates an expansion of insurance revenue to €42 billion ($44.1 billion) and a net profit of €5.1 billion ($5.3 billion) in 2025.

Due to expected strong business growth in GSI and a lower discounting effect compared to 2024, this corresponds to a combined ratio of 83% for P/C reinsurance according to the current segmentation. In life and health reinsurance, Munich Re projects a total technical result of €1.7 billion ($1.8 billion) in 2025.

ERGO, which is Munich Re’s primary insurance arm, is expected to generate insurance revenue of €22 billion ($23.1 billion) in 2025, continuing its strong development in recent years with a profit contribution of €0.9 billion ($944.6 million). A combined ratio of 89% is envisaged at ERGO Germany, and 90% at ERGO International.

From 2025 onwards, Munich Re will disclose ERGO Germany as a single reporting unit, combining the German life and health and property-casualty businesses.

Source: Munich Re