Insurance: Munich Re reports record gain and record dividend

Despite the destructive natural disasters and a weak world economy, the world’s largest reinforced insurer Munich Record to record: Last year, the DAX group increased its profit by 23 percent to just under 5.7 billion euros, as CEO Joachim Wenning and CFO Christoph Jurecka reported on the submission of the annual balance.

The company thus significantly exceeded its original profit target of five billion euros and was already very close to the six billion hoped for this year. Accordingly, the Munich Re board wants to delight the shareholders with an impressive increase in dividends: the distribution is to be increased by a third from 15 to 20 euros per share, the highest dividend paid by the company.

Wenning does not want to increase the winning goal for this year: “You can’t expect things to be repeated so pleasantly every year.” CEO and CFO emphasized from one mouth that the company would remain careful. According to the current estimate, the devastating forest fires in and around Los Angeles will cost around 1.2 billion euros, which are to be booked in the first quarter.

High damage is good for business

Reinersurers primarily insure other insurers such as Allianz or Axa. The overall financial industry has so far been excluded from the weak global economy, suffering from industry and many service providers worldwide. This is partly due to the increased interest rates and the upswing on the capital markets.

At Munich Re, the long -term trend of increasing damage caused by natural disasters is added as an additional factor: these cost a lot of money, but the demand for insurance coverage also increases. In general, the reinsurers have therefore been able to increase their prices sharply in recent years.

In 2024, the Munich Re had to spend almost one fifth more for natural disasters and people caused by people with 3.9 billion euros than a year earlier. However, the increased income as well as good business on the financial markets came to the group.

California forest fires most expensive fire in history

However, the Munich RE had to accept slight price declines by 0.6 percent when the contractual renewal in the damage and accident business with primary insurers such as Allianz and Generali at the turn of the year. However, the group’s executive floor does not expect a “soft” market, the customary term for falling prices.

This is partly due to the forest fires in Los Angeles, which, according to the insurance industry, the most expensive fire in history. According to Wenings, the damage for insurers could add up to $ 35 to $ 40 billion.

Damage due to natural disasters increase

The damage caused by natural disasters has not increased linearly from year to year, but continuously in the long -term trend. According to the vast majority of scientists, this is a result of climate change. High sea water temperatures promote the development of hurricanes. The hurricane “Helene” was also the most expensive damage to Munich Re last year with around 500 million euros. “Milton” a few weeks later costs around 400 million euros.