Munich Re generated a profit of €1,106m (579m) in Q2 2021, and a total of €1,695m (800m) for Q1–2. Below-average overall expenditure for major losses, which totaled 6.8% of net earned premiums, contributed to the Q2 result. The impact of COVID-19-related losses on reinsurance business came to €241m (700m) for the quarter and €505m (1,500m) since the beginning of the year. Of this, in the first half-year €203m (1,395m) was attributable to the property-casualty segment and €302m (105m) to life and health reinsurance. In the ERGO field of business, COVID-19-related effects had a negative impact of €6m on the Q2 result after the previous year had seen limited repercussions; there was a positive effect of €7m since the start of 2021.
The operating result in Q2 increased year on year to €1,554m (755m). In addition, the other non-operating result amounted to –€9m (–6m). The currency result totaled –€117m (23m), and the effective tax rate was 19.6% (19.3%). Compared with Q2 2020, gross premiums written moved up notably – by 14.2% to €14,642m (12,827m), and in Q1–2 by 7.7% to €29,193m (27,112m).
Equity was almost at the same level at the end of the reporting period (€29,920m) as at the start of the year (€29,994m). The solvency ratio was 225% (208% as at 31 December 2020), which is slightly above the optimum range (175–220%).
In Q2 2021, annualized return on equity (RoE) amounted to 19.2% (10.4%); the RoE for the half-year was 15.0% (7.1%).
“On track to meet our target of €2.8bn for the year, the Group is showing a very solid profit for the first half of the year. All areas of our operation are helping deliver on our strategic objectives: Munich Re is growing profitably. Our reliability and expertise are in demand, and we are making good use of the positive market environment – always balancing healthy growth and strict risk management. Munich Re is tapping and shaping tomorrow’s new business: cyber, for example, shows how we can move from the role of pioneer to that of market leader. Munich Re assumes responsibility. We are more committed than ever to the sustainability of our business, from decarbonising our investments and treaty business to strengthening ESG governance at Board of Management level. Faced with challenges such as pandemics, floods and heatwaves, our aspiration as an insurer remains to contribute our part to the solutions of the future. “ -Joachim Wenning, Chairman of the Board of Management