Munich Re posted a 56.7% increase in its net result for the first quarter of 2026 (Q1 2026), supported by significantly lower major-loss expenditure in its reinsurance and global specialty insurance operations.
The German reinsurer reported a net result of €1.71bn for the quarter.
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Operating profit rose to €2.23bn from €1.46bn a year earlier, while the total technical result increased to €2.67bn from €2.05bn.
Insurance revenue from insurance contracts issued fell to €15.01bn from €15.81bn, which Munich Re attributed mainly to adverse currency translation effects.
Annualised return on equity improved to 19.7%, compared to 13.3% in the prior-year period.
The group’s reinsurance business generated a quarterly net result of €1.48bn, up from €853m a year earlier.
Within property-casualty reinsurance, the net result increased to €841m from €343m.
The combined ratio improved to 66.8% from 83.9%, reflecting lower major-loss expenditure.
Major-loss expenditure in the division declined to €130m from €1.01bn in the corresponding quarter last year, when results were affected by the wildfires in Los Angeles, US.
Global Specialty Insurance recorded a net result of €202m, compared with €8m a year earlier. Its combined ratio improved to 83.7% from 95.5%.
Life and health reinsurance reported a total technical result of €500m, down from €608m in the previous year, while the net result fell to €436m from €501m.
Munich Re said claims linked to the Iran conflict amounted to around €90m, including approximately €60m in global specialty insurance and roughly €30m in property-casualty reinsurance.
ERGO, the group’s primary insurance business, contributed €235m to Munich Re’s net result, compared with €241m a year earlier.
Insurance revenue from insurance contracts issued at ERGO rose to €5.67bn from €5.56bn, driven mainly by international business growth.
Within ERGO, the Germany segment posted a net result of €157m, up from €140m.
ERGO International reported €78m, down from €100m, reflecting higher weather-related claims in the Baltic states and Poland, as well as lower contributions from international joint ventures.
Munich Re CFO Andrew Buchanan said: “All business fields and segments have reported encouraging development, in turn contributing to the Group’s strong net result.
“Slightly lower prices in the April property-casualty reinsurance renewals do not obscure the positive overall picture: prices remain favourable and the quality of our portfolio is high.”
Munich Re reaffirmed its 2026 financial year (FY26) net result target of €6.3bn, while noting that the outlook remains exposed to geopolitical and macroeconomic uncertainty, major-loss developments, currency volatility and fluctuations in capital markets.
