In This Article:
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Net Result: EUR930 million in Q3, impacted by above-average major losses from natural catastrophes.
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Group ROE: 20% after nine months, above target.
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Return on Investment (ROI): 3.6% in Q3, with a nine-month group ROI of 3.4%.
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Reinvestment Yield: Fell to 4.3% in Q3.
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Life & Health Reinsurance Technical Result: EUR428 million in Q3.
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Property Casualty Reinsurance Combined Ratio: 90.5% in Q3, with a normalized combined ratio of 81.3%.
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ERGO Net Result: EUR164 million in Q3.
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ERGO Germany Combined Ratio: 86% in Q3.
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ERGO International Combined Ratio: 96.1% in Q3.
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Solvency II Ratio: Increased to 292% in Q3.
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Full Year Net Profit Expectation: Expected to exceed EUR5 billion.
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Life & Health Reinsurance Full Year Guidance: Total technical result guidance lifted to EUR2 billion.
Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Munchener Ruckversicherungs-Gesellschaft AG (MURGF) achieved a net result of EUR930 million in Q3, despite above-average major losses from natural catastrophes.
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The company's group ROE stands at 20% after nine months, which is well above their target.
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The investment portfolio proved resilient, posting an ROI of 3.6% supported by positive fair value changes due to rising stock markets and lower bond yields.
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Life & Health reinsurance surpassed initial full-year guidance for the total technical result by almost EUR200 million, benefiting from strong new business growth.
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The group's economic position remains strong with a Solvency II ratio slightly increased to 292% in Q3, driven by good operating performance.
Negative Points
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The Q3 result in P&C reinsurance was lower due to above-average major claims, with a combined ratio of 90.5%.
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ERGO's net result of EUR164 million in Q3 was below the pro rata run rate, mainly due to elevated NatCat losses in the international segment.
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The German motor business faced high claims inflation, affecting the combined ratio in P&C Germany.
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International business was impacted by major losses related to Storm Boris, causing severe floods in Central and Eastern Europe.
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Currency losses of almost 0.7-percentage-points partly offset the good investment result in Q3.
Q & A Highlights
Q: Can you split the Q3 P&C Re losses by specialty and pure-play P&C Re? How are you balancing the reduction in frequency exposure in P&C Re with growing your specialty business? A: Christoph Jurecka, CFO, explained that the large losses this quarter affected both GSI and reinsurance, particularly Hurricane Helene, which had a significant impact on GSI. The split for Helene was roughly 50-50 between GSI and P&C Re. Going forward, the approach to underwriting will differ between primary and reinsurance sides, with pricing and reinsurance protection being key on the primary side.