With rates in many lines of business now at more appealing levels, Munich Re CFO Christoph Jurecka notes a “very attractive environment” and says the firm is confident heading into the 1.1 reinsurance renewals.
“January renewal, we continue to be very confident. I think in many business lines prices are now at an attractive level,” said Jurecka during a recent earnings call.
On large natural catastrophe layers specifically, the CFO said that while he does not expect Munich Re’s margins to go up significantly from where they are currently, there’s also no “indication that the market will soften at all.”
While reinsurers are taking advantage of higher rates and improved terms and conditions in the property cat space, Jurecka described a differentiated picture.
“Differently, in casualty, I think there is space and also the need for rates to go up, at least in certain segments and certain markets,” he said.
“A very attractive environment for us as a reinsurer generally, and we don’t think this is going to change anytime soon,” added Jurecka.
Reporting its third quarter and nine month 2023 results earlier today, Munich Re announced an improved P&C reinsurance performance and raised its full-year profit target by €500 million to €4.5 billion, with a stronger result expected across reinsurance and ERGO.
Commenting on the outlook for growth in 2024, Jurecka stressed that this would not be done at the expense of profit.
“Would we compromise on profitability? No, we would never compromise on profitability. We never did,” said Jurecka. “At the same time, if there are growth opportunities, of course, of course we push for growth, and of course we would strive to grow our book, if possible, at attractive terms and prices and so on.”