Quarterly figures: Munich Re cuts two billion euros from sales forecast
The pressure on prices in reinsurance is forcing Munich Re to revise its targets: The insurance revenue is likely to reach €38 billion, rather than €40 billion. However, the profit target remains unchanged.
Munich Re, the world's second-largest reinsurance company, has revised its 2023 insurance and reinsurance premiums downward by 2.9 billion euros, or 9.1%, due to prices in the reinsurance sector remaining under pressure. The insurer disclosed that prices had dropped by 5.5% in negotiations with primary insurers and brokers as of July 1. Munich Re CEO Christoph Jurecka explained that they are consciously forgoing business where they do not receive risk-adequate prices.
The July renewal focused primarily on contracts in North and South America and Australia. Looking ahead to the crucial renewal round starting on January 1, Munich Re anticipates a market environment where, despite high competition, the good price level and improvements in contract terms can largely be maintained. The company expects global insurance and reinsurance premiums for the current year to total 38 billion euros, two billion less than previously forecast.
This reduction will also impact the group's total revenue, which is projected to be 62 (previously 64) billion euros. However, Munich Re remains confident in its profit forecast, aiming for 6.3 billion euros.
Written by urgent.news from Handelsblatt's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
