Industry giant Munich Re has disclosed that due to consistently good operational performance in all business segments, the group is now aiming for an IFRS net profit of €6 billion in 2025.
This morning, the reinsurance giant announced some targets for next year, forecasting that insurance revenue will reach €64 billion as well as an improved return on investment to above 3%.
In its reinsurance field of business, Munich Re anticipates an expansion of insurance revenue to €42 billion and a net profit of €5.1 billion in 2025.
The reinsurer describes current market conditions as favourable, noting that it will continue to leverage its strong market position.
In terms of underwriting profitability, the company expects a combined ratio of 79% in P&C reinsurance and 90% in Global Specialty Insurance (GSI), the latter will become a separate IFRS reporting segment from next year.
Munich Re explains that due to strong business growth in GSI and a lower discounting effect compared to 2024, this corresponds to a combined ratio of 83% for P&C reinsurance according to the current segmentation.
In life and health reinsurance, the firm has projected a total technical result of €1.7 billion in 2025.
Within the ERGO field of business, insurance revenue of €22 billion is forecasted for 2025, continuing its strong development in recent years with a profit contribution of €0.9 billion.
For ERGO Germany, the combined ratio is expected at 89%, and 90% for ERGO International. From 2025 onwards, Munich Re will disclose ERGO Germany as a single reporting unit, combining the German life and health and property/casualty businesses.
