Munich Re profit beats consensus as P&C reinsurance drives Q3 result

Munich Reinsurance reported a stronger-than-expected third-quarter result, exceeding analyst projections. The company's property and casualty reinsurance and Global Specialty Insurance divisions contributed significantly to the increase, which more than compensated for a decline in life and health reinsurance. Munich Re's net result was €1.74 billion, a 12.8% decrease from €2.00 billion the previous year, but it surpassed the consensus estimate of €1.479 billion by 17.8%.

Earnings per share also beat expectations by 18.2%. Operating results reached €2.47 billion, a 22% increase over the €2.03 billion consensus, despite a drop from €3.04 billion the year before. Gross written premiums rose 8.3% above estimates, and gross insurance revenue exceeded forecasts by 10.1%. P&C Re generated an operating result of €1.39 billion, €406 million higher than expected, while Global Specialty Insurance delivered €266 million, €79 million above projections.

However, life and health reinsurance fell short of expectations by €70 million. The reinsurer's combined ratio was 2.6 percentage points worse than anticipated, but this was offset by higher major claims and weaker reserve releases. The group investment result fell short of estimates by 1.5%, with a return on investment of 3.2% against the expected 3.3%.

Munich Re adjusted its combined-ratio guidance to below 80% for P&C Re and below 90% for GSI, and raised its 2026 net result target to €6.6 billion from €6.3 billion. The company's gross insurance revenue guidance is around €62 billion, down from €64 billion. Jefferies maintained its hold rating and €550 price target, which is approximately 3% below the prior close.