MURGY Muenchener Rueckversicherungs Gesellschaft AG (PK)

By Ed Frankl

Munich Re AG said Thursday that profit and premiums rose in the final quarter of 2022, as the company recovered from a third quarter marked by sizeable natural-catastrophe losses.

The world's largest reinsurer by premiums said net profit in the three months to the end of December was 1.53 billion euros ($1.62 billion), up from EUR868 million in the same period of 2021.

Its main reinsurance segment drove the increased profit, with an investment result that jumped 61% and premiums that climbed 12%.

Quarterly gross premiums at Munich Re overall came to EUR16.22 billion, up 9% on year.

The result compares with expectations of EUR1.40 billion in net profit and EUR16.20 billion in premiums, according to consensus expectations provided by the company.

Over the year, Munich Re posted a net profit of EUR3.42 billion, exceeding its profit target of EUR3.3 billion.

It meant the company more than compensated in 4Q for the expenditure for the devastating Hurricane Ian in the prior quarter, which incurred losses of around EUR1.6 billion, and a lower investment result over the course of the year, it said.

The Bavarian company detailed its outlook for 2023, including insurance revenue, a new measurement of premium income, of around EUR58 billion, and a return on investment of at least 2.2%.

However, it kept its headline profit figure of EUR4.0 billion for the year.

At January renewals, which guides pricing for the year ahead, Munich Re said it increased its written business volume to EUR15.3 billion, up 1.3%, as prices developed positively and compensated for significantly larger loss estimates in some areas, which were caused primarily by inflation or other loss trends.

The DAX-listed company said it expects the market environment to remain positive, with growth opportunities in the April and July renewal rounds.

Munich Re said Wednesday that it would launch a share buyback of up to EUR1 billion and a dividend of EUR11.60 a share, amounting to a total capital return of EUR2.6 billion.

Write to Ed Frankl at edward.frankl@wsj.com

(END) Dow Jones Newswires

February 23, 2023 02:30 ET (07:30 GMT)

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