Menu

Reinsurance News

Ergo on track to return to profitability: Munich Re CEO, Wenning

28th April 2017 - Author: Luke Gallin

Joachim Wenning, who recently commenced his role as Chief Executive Officer (CEO) and Chairman of the Board at reinsurer Munich Re, has expressed support for the company’s primary insurance division, Ergo.

Joachim Wenning, CEO and Chairman of the Board of Management, Munich ReIn recent times investors have expressed concern with the performance of the Ergo unit, which provides a comprehensive range of insurance products and services, with some apparently worried that the division is a drag on the profitability of Munich Re’s core reinsurance operations.

However, during the recent Munich Re annual general meeting (AGM), Wenning told shareholders that “Ergo is on a solid path,” and one of “modernisation and slimming down.”

The concerns of investors aren’t entirely without warrant, with the Ergo unit posting a loss in 2016, although this was perhaps somewhat expected as the unit underwent a deep restructuring in June, 2016, in an effort to return to profitability.

However, the German domiciled reinsurance giant is confident its primary insurance unit will generate profit of between €150 million (US$162.8mn) and €200 million (US$217.1mn) in 2017, and contribute €600 million (US$651.3mn) to the firm’s profit from the year 2021.

Munich Re announced recently that despite challenging market conditions it expects to reach its profit target for 2017, of between €2 billion (US$2.18bn) and €2.4 billion (US$2.62bn).

Print Friendly, PDF & Email

Recent Reinsurance News

Getting your daily reinsurance news from Reinsurance News is a simple way to receive only the reinsurance industry news that matters, delivered directly to your email inbox.

  • Only email is mandatory, but the more you tell us about yourself the better we can serve you in future!
  • This field is for validation purposes and should be left unchanged.

By submitting the form you are giving your consent to be emailed by us.

Read previous post:
Swiss Re adjusts its financial reporting

Reinsurance firm Swiss Re is changing the way it reports its performance, adjusting the financial reporting it will deliver at...

Close