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Munich Re announces Bernd & Ida losses of €1.8bn in Q3

19th October 2021 - Author: Luke Gallin

For Q3 2021, global reinsurance giant Munich Re has pre-announced losses of roughly €600 million from the impacts of windstorm Bernd in Europe in July, and losses of around €1.2 billion from Hurricane Ida in the U.S.

Munich ReThe cost of Bernd, which resulted in severe flooding and flash floods in Germany and neighbouring countries, will hit Munich Re’s property-casualty reinsurance unit and ERGO’s property-casualty arm in Germany.

While the cost of Ida, which made landfall as a Category 4 storm near Port Fourchon, Louisiana, before its remnants went on to impact the North-easterly states of the U.S., will also impact Munich Re’s property-casualty reinsurance division.

Despite the combined roughly €1.8 billion of losses from these two events, the reinsurer still expects to achieve a preliminary result for the quarter of roughly €400 million, which is up on the consensus of a loss of €10 million.

The firm attributes this positive preliminary result to “continued positive performance in all segments and a high investment result – also due in part to large gains on disposals – as well as a high currency translation result”.

Taking into account its preliminary result for Q3, Munich Re says that for the first nine months of the year it has achieved a result of around €2.1 billion.

Furthermore, the reinsurer still expects to meet its overall profit target of €2.8 billion for the full-year 2021.

Interestingly, Munich Re explains that this forecast includes higher COVID-19 losses for life and health reinsurance than it anticipated when it announced its Q2 results.

The company said previously that its L&H reinsurance division would not meet its technical result target of €400 million for the year.

In P&C reinsurance, Munich Re has reported no noteworthy COVID-19 losses in Q3 2021.

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