Munich Re posts worse-than-expected Q3 profit after big claims

(Reuters) — German reinsurer Munich Re on Tuesday said it posted a worse-than-expected net profit in the third quarter following big claims for natural disasters but that it would surpass its 2024 profit target.

The company, which is the world’s largest reinsurer, said in an unscheduled release that net profit amounted to around 900 million euros ($974.4 million) in the period, a roughly 23% drop from 1.17 billion euros a year ago. Analysts had expected net profit of 1.42 billion euros.

Munich Re said Hurricane Helene, which battered the U.S. Southeast at the end of September, was its largest claim, amounting to around 500 million euros in losses.

It came on top of losses in Canada and elsewhere.

Despite the claims, Munich Re said that it would exceed its full-year profit guidance of 5 billion euros, a possibility that the company flagged earlier this year.

It will announce full figures on Nov. 7.