Munich Re firmly sticks to 2022 target after Q3 profit increase

(Reuters) — Munich Re on Tuesday posted a 44% rise in third-quarter net profit,, despite big claims from Hurricane Ian, and it “firmly” stuck to its full-year earnings target.

Net profit in the quarter of €527 million ($527.2 million) compared with €366 million in the year-earlier period when storm claims also dented results.

Last month the reinsurer already flagged that it expected profit of around €500 million, well above consensus for a loss of €167 million.

“Although Hurricane Ian and the macroeconomic environment are making it significantly more challenging for us, we are firmly adhering” to 2022 profit guidance of €3.3 billion, said Chief Financial Officer Christoph Jurecka.

Hurricane Ian, which ripped through parts of Florida in late September, will cost Munich Re an estimated €1.6 billion in claims.

As a result, Munich Re now projects that the combined ratio in its property and casualty division — a key measure of profitability — will be a less favorable 97% this year, compared with previous expectations of 94%. Readings below 100% indicate profitability.

But the company raised its full-year guidance for gross premiums in its reinsurance business and at its Ergo primary insurance business.