Munich Re records $3.9b profit in 9M23

The German reinsurer has been following the new reporting standards IFRS 9 and 17.

In the third quarter of 2023, Munich Re achieved a net result of €1.17b, marking a positive trend. For the first three quarters of the year, the net result amounted to €3.6b. This performance reflects a third consecutive quarter of surpassing the pro-rata guidance.

Munich Re has been following new financial reporting standards, IFRS 9 and IFRS 17, since 1 January 2023. 

In the same quarter, insurance revenue from insurance contracts issued decreased slightly year-on-year to €14..5b. 

However, for the first three quarters, this figure increased to €43.0b. The total technical result in Q3 climbed to €2.2b, and the investment result rose to €760m. The currency result was €309m, primarily due to exchange gains against the US dollar. The operating result increased to €1.8b, with an effective tax rate of 32.6%.

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Equity at the reporting date was slightly higher at €27.6b compared to the beginning of the year (€27.2b). The solvency ratio stood at around 271%, well above the optimum range of 175–220%.

In Q3 2023, the annualised return on equity (RoE) was 15.8%, with an RoE for Q1–3 at 16.5%, both of which fall within the RoE target range of 14 to 16% specified in the Ambition 2025 strategy programme.

The reinsurance business contributed €995m to the group's net result in Q3, with the result for the first three quarters reaching €3.0b. 

Insurance revenue from insurance contracts issued decreased to €9.5bin Q3. The total technical result rose to €1.6b, and the operating result increased to €1.5b.