How does the mild hurricane season affect Munich Re's profits?

How does the mild hurricane season affect Munich Re's profits?

According to a report by www.zeit.de, the mild hurricane season brought the world's largest reinsurer Munich Re a slight increase in profits in the summer. In the third quarter, the company recorded a profit of almost 1.2 billion euros, which corresponds to an increase of around six percent compared to the previous year. Munich Re earned a total of around 3.6 billion euros in the first nine months of the year and the profit forecast for the current year was raised to around 4.5 billion euros.

This positive profit increase is primarily due to the lower major losses recorded in the third quarter. Despite severe destruction caused by the forest fire on the Hawaiian island of Maui, Munich Re only had to spend a third as much on major losses as in the same period last year. This time, major losses only cost the company 770 million euros, around 200 million of which were due to the forest fire on Maui.

However, it is worth noting that profit did not increase more because the primary insurance subsidiary Ergo and the life/health reinsurance segment generated less this time after positive special effects in the previous year. Since this year, Munich Re has been calculating its business figures according to the new accounting standards IFRS 17 and IFRS 9, and the previous year's figures have been adjusted accordingly.

Overall, this increase in profits shows that the mild hurricane season had a positive impact on Munich Re's financial performance. This could also increase confidence among investors and shareholders and consolidate the company's position in the market.