Munich Re profits tumble in Q2 2020

Munich Re saw profits fall by 42% to £522m in Q2 2020, compared to the same period last year.

The re/insurer also announced COVID-19 related losses for the quarter of £632m taking pandemic losses for the first half of the year to £1.4bn.

Of the £1.4bn in COVID-19-related losses incurred since the beginning of the year, approximately £1.3bn was attributable to property and casualty reinsurance and around £0.1bn to life and health reinsurance.

Compared to Q2 2019, gross premiums written increased by 8.7% to £11.5bn.

Chairman Joachim Wenning said: “We are growing profitably, while taking steps to benefit from the significantly improved market conditions for reinsurers.

He added: “We are utilising the capital originally earmarked for the 2020/2021 share buy-back programme – which we will not implement – to invest in profitable reinsurance growth. Prices have risen in nine consecutive renewal rounds, and premium income has grown correspondingly. With our high-quality portfolio, we expect to post a premium volume of £48.7bn in 2020 – which would set a new record in the 140-year history of Munich Re.”

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