Global reinsurer Munich Re has added a further €800 million of COVID-19-related losses in its reinsurance operation in the third-quarter of 2020, taking its total for the first nine months of the year to €2.3 billion.
The German reinsurer explains that the losses were attributable to various lines of business, including for major events and other property / casualty lines, and also the life and health business.
The €800 million of registered COVID-19-related losses in Q3 adds to the €700 million reported in Q2 and the €800 million recorded in Q1, taking the total to €2.3 billion so far for 2020.
At the same time, Munich Re has warned that high losses from natural catastrophes, most notably severe hurricanes and wildfires in the U.S., as well as man-made losses, including the Beirut port explosion, resulted in the firm experiencing an above-average claims burden from major losses not related to the pandemic for a single quarter.
Despite the significant impact of the COVID-19 pandemic on its reinsurance operation, Munich Re is still expecting to post a quarterly profit of around €200 million, which it attributes to the “good performance once again at ERGO.”
However, at approximately €200 million, the reinsurer’s third-quarter 2020 profit has declined by almost 77% from the €865 million reported for the third-quarter of 2019.
The company is scheduled to publish its third-quarter financial results on November 5th, 2020.
