Munich Re expects a profit of five billion euros in 2024 through higher prices for reinsurance protection

Munich Re expects a profit of five billion euros in 2024 through higher prices for reinsurance protection

According to a report by www.stern.de,

Higher prices for reinsurance protection are boosting Munich Re's profit prospects for the coming year. CEO Joachim Wenning expects a surplus of around 5 billion euros for 2024, as the world's largest reinsurer announced on Friday in Munich. That is eleven percent more than the 4.5 billion euros that the manager has planned for 2023. The primary insurance subsidiary Ergo is also expected to continue to grow.

This positive profit forecast for 2024 is due to the higher prices for reinsurance protection that Munich Re is planning. These price increases enable higher profits as the reinsurance sector is on a profitable path. Competitors, including Swiss Re and Hannover Re, also have positive profit forecasts for the coming years. The forecasts suggest that the insurance industry as a whole will benefit from rising profits.

The lower major losses recorded by Munich Re also contributed to a positive profit situation. This development could result in Munich Re and other insurance companies continuing to charge higher prices for their services to compensate for rising costs associated with claims and inflation. This trend could continue in the coming years, which in turn could lead to higher profits for the insurance industry.

Overall, the forecast for 2024 for Munich Re and other reinsurance companies is positive, as it points to increasing profits and robust industry development.