Munich Re confirms €6bn annual guidance as net result rises 12% to €5.2bn in 9M’25

Munich Re, one of the world’s largest reinsurance companies, has confirmed its annual guidance of €6 billion for the 2025 financial year, after generating an improved net result for both the third quarter and first nine months of the year, with a strong performance across the business.

Group-wide, the Q3’25 net result increased by 120% to €1.997 billion in Q3’25, and increased by 12% to €5.176 billion for the nine month period ended September 30th, 2025.

However, insurance revenue from insurance contracts issued decreased by 6% to €14.575 billion in the quarter, and fell by 1% to €45.162 billion for the nine month period, driven mainly by negative currency translation effects.

For the quarter, the total technical result increased from €1.696 billion in 2024 to €2.822 billion in 2025, and reached €7.910 million in 9M’25 compared with €6.782 billion a year earlier.

The currency result, driven mainly by foreign exchange losses against the US dollar, amounted to -€189 million in 2025 compared with -€462 million in 2024.

The net financial result totalled €813 million in Q3’25, an improvement on the prior year’s loss of €58 million, while for the nine month period the net financial result increased to €1.026 billion from €954 million.

Across the Group, the operating result also improved for both reporting periods, hitting €3.036 billion in Q3’25, an increase of 162% year-on-year, and reaching €7.418 billion in 9M’25, reflecting year-on-year growth of 19%.

In Q3’25, the annualised return on equity (RoE) amounted to 24.2%, up from Q3’24’s 11.5%, and to 20.8% in 9M’25, compared with 19.9% in 9M’24.

Munich Re’s reinsurance segment has performed strongly in 2025, and contributed €1.693 billion to the third quarter net result, compared with €766 million last year. For 9M’25, the segment contributed €4.38 billion to the net result, up on the prior year’s €3.993 billion.

Within reinsurance, insurance revenue from insurance contracts issued decreased to €9.262 billion in Q3’25 from €10.224 billion in Q3’24, and for 9M’25 fell to €29.143 billion from €29.957 billion.

The reinsurance total technical result increased by 83% to €2.19 billion in Q3’25, as the operating result rose by 159% to €2.477 billion.

Munich Re’s property and casualty (P&C) business had a very strong third quarter, with a net result of €1.187 billion, up 351% on the prior year’s €263 million. For 9M’25, the P&C net result hit €2.724 billion, an increase on 9M24’s €2.273 billion.

The reinsurer attributes the much stronger third quarter performance to very low major loss expenditure, which declined to €118 million from €1.336 billion after retrocessions and before taxes. This total, explains the firm, includes run-off profits and losses for major claims from previous years, and is equivalent to 2.9% of net insurance revenue, which is significantly below the expected figure of 17%.

During the quarter, Munich Re released €47 million for major losses from nat cats, after a cost of €1.137 billion in Q3’24 due to a number of major loss events in the US, Canada, and Central and Eastern Europe. Man-made losses also declined to €165 million from €199 million.

The P&C combined ratio strengthened considerably in the third quarter, falling to 62.7% from 89.5% a year earlier, and for 9M’25 improved to 69.8% from 77.9% in 2024, driven by a lower major loss ratio.

In the firm’s life and health (L&H) reinsurance arm, the total technical result decreased to €314 million in Q3’25 from €507 million in Q3’24, due primarily to unfavourable claims experience, although Munich Re notes that this remained within the scope of normal fluctuations. For 9M’25, the L&H total technical result decreased to €1.226 billion from €1.559 billion a year earlier.

The L&H net result totalled €286 million in Q3’25 compared with €481 million in Q3’24, and for 9M’25 reached €1.131 billion, down on the prior year’s €1.481 billion.

Insurance revenue from insurance contracts issued in L&H reinsurance amounted to €2.868 billion in Q3’25 compared with €2.936 billion in Q3’24, and for 9M’25 increased to €9.033 billion from €8.924 billion in 9M’24.

Within Global Specialty Insurance (GSI), the net result improved to €221 million in Q3’25 from just €22 million a year earlier, and for 9M’25 increased to €525 million from the prior year’s €239 million. Insurance revenue from insurance contracts issued amounted to €2.153 billion in Q3’25 compared with Q3’24’s €2.233 billion, and for 9M’25 totalled €6.464 billion, in line with the prior year’s €6.448 billion.

The GSI combined ratio strengthened to 82.8% in Q3’25 from 92.6% in Q3’24, and improved to 85.8% for 9M’25 from the prior year’s 91.3%. This was mostly driven by lower major loss expenditures of €59 million in Q3’25 compared with €273 million in Q3’24.

Turning to ERGO, the reinsurer’s primary insurance business, the Q3’25 result improved to €304 million from €141 million a year earlier, and for 9M’25 increased to €796 million from €629 million. Insurance revenue from insurance contracts issued increased to €5.313 billion for Q3’25 and to €16.019 billion for 9M’25, compared with €5.271 billion and €15.553 billion, respectively, in 2024.

On the asset side of the balance sheet, Munich Re’s investment result increased to €2.385 billion for Q3’25 from €2.091 billion a year earlier. For 9M’25, the investment result increased to €5.894 billion from €5.724 billion. The company explains that the higher investment result compared to the prior year quarter was due primarily to the increased regular income and the higher result from the disposal of investments.

Christoph Jurecka, Chief Financial Officer, commented: “Munich Re generated a high net result of just under €2bn in the third quarter. We are therefore fully on track to achieve our target of €6bn for the full year. The main reasons for the outstanding quarterly result were the excellent combined ratios in property-casualty reinsurance and Global Specialty Insurance, in addition to good operating performance overall. These ratios reflect a below-average major-loss expenditure. Together with the excellent performance at ERGO and a high investment result, we were thus able to more than compensate for a somewhat weaker quarter in life reinsurance, and for currency losses. Our diversification strategy is working.”

After delivering these strong results so far in 2025, Munich Re has confirmed its guidance of €6 billion for the year, but in reinsurance, is now expecting insurance revenue of €39 billion, down on the previous €40 billion, due to premium adjustments, the effects of renewals, and exchange rate developments.

The firm explains: “The insurance revenue forecast for the Group is therefore €61bn (previously €62bn). Mainly due to low major-loss expenditures, a combined ratio of around 74% (previously around 79%) is now expected in the property-casualty reinsurance segment, while a combined ratio of about 87% (previously approximately 90%) is now forecast for the GSI segment. All other expectations for 2025 remain unchanged compared to the information in the 2025 half-year financial report published in August.”