Profitable businesses
Leading reinsurers promise higher profits
Insurance lives from claims; in a world without damage and catastrophes the industry would be superfluous. The world’s two largest reinsurers in Munich and Zurich are doing well.
The world’s two largest reinsurers, Munich Re and Swiss Re, promise their shareholders higher profits even in times of crisis. Munich Re, number one on the global market, wants to increase its earnings from around five billion euros this year to six billion in 2025. Swiss rival Swiss Re in second place is targeting 4.4 billion euros, after 3 billion this year. This was announced by the two companies in Munich and Zurich.
Insurance companies have so far been exempt from the economic crisis
Reinsurers are the companies with which primary insurers such as Allianz, Axa and Generali insure themselves in order to be able to withstand even very high losses in the event of an incident. The reinsurance industry is one of the few in which European companies are still leaders in the global market. On the one hand, companies are benefiting from the rise in interest rates over the past two years, even if they are currently falling again. At the same time, demand for insurance protection is high, partly because of the long-term trend of increasing losses from natural disasters.
Ambitious Swiss rival to Munich Re
Munich Re expects good development in all business areas. The actual reinsurance business is expected to increase its net profit from over 4.2 billion euros to around 5.1 billion euros. The primary insurance subsidiary Ergo is expected to increase its net profit slightly to 0.9 billion euros in 2025.
The Swiss competitor Swiss Re is hoping for an even bigger jump in profits than the Munich-based company. The Zurich-based group also announced that it plans to increase the ordinary dividend per share by seven percent or more annually over the next three years.
dpa
Source: Stern
