Insurance Munich Re quantifies losses from Helene

The series of severe storms and thunderstorms in the USA, the Caribbean and Europe is a burden for reinsurer Munich Re, but does not jeopardize the profit target for this year, according to the Board of Management.

At 900 million euros, net profit in the third quarter will be around half a billion euros lower than analysts had expected, as the Munich-based DAX-listed group announced on Tuesday.

The costliest natural catastrophe in the third quarter was Hurricane Helene, which hit the south-east of the USA in September. According to preliminary figures, "Helene" alone cost Munich Re around 500 million euros. Nevertheless, CEO Joachim Wenning and his colleagues expect the company to achieve this year's net profit target of over EUR 5 billion.

It was only after the end of the third quarter that Hurricane Milton devastated the US state of Florida at the beginning of October. Munich Re also expects a "significant claims burden" in this case, as stated in the press release. However, as the company already achieved a net result of 4.7 billion euros in the first nine months, the Board of Management expects to "exceed the earnings target of 5 billion euros for 2024".

SDA