Joachim Wenning, Chief Executive Officer (CEO) of Munich Re, is confident that the favourable market environment for property and casualty (P&C) reinsurers will continue throughout 2024, after a positive January 1st reinsurance renewal period.
Addressing shareholders at Munich Re’s Annual General Meeting (AGM), CEO and Chair of the Board, Wenning, described the firm’s 2023 performance as “the latest pinnacle in a winning streak of good years.”
He noted that since the reinsurance giant announced its Ambition 2025 five-year strategic plan, it has consistently surpassed its annual profit guidance.
In 2023, the firm generated a net result of €4.6 billion, which is above its revised €4.5 billion profit target announced in October, driven in part by a reinsurance result of €3.9 billion.
Munich Re is scheduled to release its full Q1 2024 results on May 8th, but earlier this week released some preliminary figures, including a net profit of €2.1 billion and a P&C reinsurance combined ratio of 75%.
The reinsurer has taken advantage of favourable conditions for P&C reinsurers at the recent renewals, with Wenning describing the January 1st, 2024, renewals as positive for the firm in terms of both the level of profitability and the quality of the portfolio.
“What’s more, we don’t anticipate this trend to weaken during this year’s remaining renewal rounds,” said Wenning.
The mid-year renewals are focused on US wind, a peak peril for reinsurers, and with Wenning expecting a continuation of the favourable environment for sellers seen at Jan 1, it’s likely that large reinsurers such as Munich Re will look to grow and capitalise on increased demand.
It was also confirmed at the AGM that Roland Busch, Julia Jäkel, Victoria Ossadnik, and Jens Weidmann have been newly elected to the company’s Supervisory Board.
In addition, a dividend of €15 per share was approved for 2023, the overall payout of which amounts to roughly €2 billion.
