Analyst Note| Henry Heathfield, CFA |
We think that Munich Re has reported a good start to 2022. The rhetoric from reinsurers so far this quarter has been one of much higher major loss expenditure. However, the impacts to Munich’s balance appear to be more muted as losses of over EUR 10 million have totaled EUR 667 million for the business and that includes EUR 100 million in relation to the Russia-Ukraine war. This has been offset by a EUR 100 million release in relation to major losses in prior years and brings Munich’s major loss expenditure for the period to 9.2% of property and casualty net earned premium, only bettered by Hannover Re during these three months. The strong 91.3% reported combined ratio has been aided by a total of EUR 291 million of releases from reserves.