MUNICH, Germany—Munich Reinsurance Co. on Thursday reported increased profits and premiums for the first nine months of this year compared with the same period last year.
The Munich, Germany-based reinsurance group said its results benefited from improved investment returns for the period.
“If the rest of the financial year 2009 goes so well, we may even reach our ambitious (return on risk-adjusted capital) target of 15% after tax,” Munich Re Chief Financial Officer Jörg Schneider said in a statement.
Munich Re said it made a profit of €1.8 billion ($2.65 billion) for the first nine months of this year compared with €1.4 billion ($2.06 billion) for the same period last year.
Gross written premiums increased 10.4% to €31 billion ($45.62 billion), while total expenses for claims rose 16.2% for the same period to €24.4 billion ($35.91 billion).
The combined ratio for the reinsurance business, which generated €18.7 billion ($27.52 billion) in gross written premiums, declined to 96.3% compared with 100.1% for the first nine months of last year.
The combined ratio for the primary business, which contributed €13 billion ($19.13 billion) in gross written premiums, was 94.2% for the first nine months this year vs. 90% for same period last year.
The group’s technical underwriting profit fell from €2.1 billion ($3.09 billion) for the first nine months of last year to €1.9 billon ($2.80 billion) so far this year.
The investment result, however, jumped 47.5% to €5.8 billion ($8.54 billion) so far this year.
The group said July treaty renewals for property/casualty reinsurance—mainly for clients in Australia, Latin America and the United States, plus some global clients—went “satisfactorily,” resulting in an average price increase of 4.4%.
For January 2010 renewals, Munich Re said it expects prices for capital-intensive natural catastrophe business to “stabilize at a high level, or even rise further.”
The German reinsurance group said most other markets’ price levels “will probably move sideways” but said it expects further price increases in credit and surety business and in the aviation market.
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