Munich Re targets net profit of €6bn for 2025
Industry giant Munich Re has disclosed that due to consistently good operational performance in all business segments, the group is now aiming for an IFRS net profit of €6 billion in 2025.
This morning, the reinsurance giant announced some targets for next year, forecasting that insurance revenue will reach €64 billion as well as an improved return on investment to above 3%.
In its reinsurance field of business, Munich Re anticipates an expansion of insurance revenue to €42 billion and a net profit of €5.1 billion in 2025.
The reinsurer describes current market conditions as favourable, noting that it will continue to leverage its strong market position.
In terms of underwriting profitability, the company expects a combined ratio of 79% in P&C reinsurance and 90% in Global Specialty Insurance (GSI), the latter will become a separate IFRS reporting segment from next year.
Munich Re explains that due to strong business growth in GSI and a lower discounting effect compared to 2024, this corresponds to a combined ratio of 83% for P&C reinsurance according to the current segmentation.
In life and health reinsurance, the firm has projected a total technical result of €1.7 billion in 2025.
Within the ERGO field of business, insurance revenue of €22 billion is forecasted for 2025, continuing its strong development in recent years with a profit contribution of €0.9 billion.
For ERGO Germany, the combined ratio is expected at 89%, and 90% for ERGO International. From 2025 onwards, Munich Re will disclose ERGO Germany as a single reporting unit, combining the German life and health and property/casualty businesses.
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