After the reinsurer company reported a sharp decline in its net profit in the first quarter, shares of Munich Re’ were trading at approximately %Five is down. The net result was €1.09 billion in the first quarter of 2025’. This figure is compared to the previous year's 2.12 billion euros. According to the quarterly report of the German reinsurer company, the decline in earnings was mainly due to major damages and fluctuations in capital markets.
The wildfires in Los Angeles’ were the main source of a major spending loss, costing the company 1.1 billion Euro’.
Reinsurance broker Gallagher Re’nin's latest Natural Disaster and Climate ReportAccording to ’, the Los Angeles wildfires caused an estimated $65 billion in economic losses and up to $40 billion in in insured losses.
Christoph Jurecka, CFO’ of Munich Re’, “Munich Re, January 2025Although ’te did not emerge unscathed from the devastating wildfires in Los Angeles’, we still managed to make a profit of 1.1 billion euros every three months, ” said. “This is an example of the resilience of the Munich Re Group, which is once again strengthened by the prudent management of our business portfolio.’
Beyond the losses caused by wildfires in ’, the company's investment result also downgraded the overall result; mainly due to noticeable fluctuations in interest rates, in the first three months it decreased from 2.16 billion Euro’ in the previous year to 1.32 billion Euro’.
The company also lost half a billion euros in currency exchange, mainly due to the weakening dollar.
Insurance revenue from insurance contracts increased to 15.8 billion Euro’. In this segment, ERGO, which belongs to the group, one of the largest insurance groups in Europe’, provided one-third of this revenue and showed strong growth, especially in international business. Ergo International, Munich Re’'s revenue among its divisions compared to the previous year %It was the fastest company to increase by 8.8 percent.
ERGO recently gained access to the U.S. small business insurance market following Munich Re’'s acquisition of Next Insurance’ in March. This can increase the overall earnings of Munich Re’, which has just confirmed its financial outlook.
Jurecka, “Thanks to the ongoing positive market conditions and the high quality of our portfolio, we remain committed to our profit target of 6 billion Euro’ for fiscal year 2025, ” said.
