Munich Re generated a profit of 768 million Euros in the second quarter, as the global economy’s recovery from the recession triggered by COVID-19 slowed substantially and despite a cooling in the economy and the war in the Ukraine.
“The profitability of our business is very good, and we again saw clear and profitable growth,” said Joachim Wenning, Chair of the company’s Board of Management.
“Our clients are all the more appreciative of our strong balance sheet in these uncertain times. Now is the time to seize opportunities in markets that are continuing to harden. At the same time, we are systematically increasing the share of earnings generated by less-cyclical business. The rise in interest rates will give us tailwind in the long term by allowing us to benefit from higher running yields. Our annual target and our objectives for our “Ambition 2025” medium-term strategy are firmly in sight.”
The financial results indicate a low combined ratio in property-casualty reinsurance and a good technical result in life and health reinsurance. There was also a strong increase in reinvestment yield with falling share prices and higher interest rates adversely impacting the investment result.