Munich Re Eyes $6.3b Net Profit in 2025

Munich Re has unveiled its bullish outlook for 2025, eyeing an IFRS net profit of $6.3b (€6b). This target is underpinned by robust operational achievements across all its business segments. The company anticipates group insurance revenue to soar to $67.2b (€64b) in the coming year, accompanied by a return on investment surpassing 3.0%.

In the reinsurance domain, it projects insurance revenue of $44.1b (€42b) and a net profit of $5.4b (€5.1b) for 2025. Munich Re intends to leverage the favorable market climate and its dominant market standing. The combined ratio is expected to remain in the black, with 79% in property and casualty (P&C) reinsurance and 90% in Global Specialty Insurance (GSI). Notably, starting in 2025, GSI will be accounted for as a distinct IFRS segment.

Looking at other segments, in life and health reinsurance, a technical result of $1.8b (€1.7b) is forecasted. For the ERGO business segment, Munich Re aims for insurance revenue of $23.1b (€22b) and a profit contribution of $0.95b (€0.9b). The combined ratio is estimated at 89% for ERGO Germany and 90% for ERGO International. With ERGO Germany set to be reported as a single entity from 2025, combining life, health, and property-casualty operations. The market will be keenly awaiting the release of Munich Re’s full-year 2024 financial figures on 26 February 2025 to assess its progress towards these ambitious goals.

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