Munich Re exceeded its self-imposed profit target despite additional burdens from the Corona crisis.

The largest reinsurer in the world generated net income of 2.93 billion euros last year (2020: 1.21), as announced in Munich on Wednesday.

Munich Re had targeted 2.8 billion.

While the burdens from the corona pandemic – mainly due to the cancellation of major events and business interruptions – fell significantly, as feared, an increasing number of Covid 19 deaths in life reinsurance hit the books at 785 million euros.

In the USA, South Africa and India in particular, significantly more people died than usual.

CEO Joachim Wenning is aiming for a net profit of 3.3 billion euros for the new year;

the pandemic should then only have an impact of 300 million euros.

Munich Re last had a profit of more than three billion euros in 2015, 3.3 billion would be the highest value since 2013. Wenning has prescribed the reinsurer a growth course in order to drive the results upwards.

"The 'Ambition 2025' strategy program got off to a good start and has picked up speed," said Wenning.

"We will consistently use this momentum and the good market environment."

Good business with primary insurers

This is also reflected in the negotiations to renew contracts with primary insurers as of January 1st.

Munich Re wrote almost 15 percent more business here, although prices, adjusted for the growing risks, only rose by 0.7 percent.

The market environment also offers attractive growth opportunities for the next renewal rounds in April and July.

Wenning wants to increase premium income to around 61 billion in the current year.

In 2021, Munich Re had already grown to a record result of EUR 59.6 billion – an increase of 8.5 percent.

Reinsurance once again contributed the lion's share of profits, although losses from natural catastrophes tripled to 3.1 billion euros.

The greatest loss was hurricane "Ida" with 1.2 billion.

The flood disaster on the Ahr and Erft in July cost Munich Re half a billion euros.

Corona damage in property and casualty insurance, on the other hand, fell to 212 million euros.

The primary insurance subsidiary Ergo exceeded its target with a profit of 605 (517) million euros.

The shareholders should also benefit from the rising profits.

Munich Re increases the dividend by twelve percent to eleven euros, as announced on Tuesday.

Because the capital base with a solvency ratio of 227 (end of 2020: 208) is thicker than planned, it also wants to resume buying back its own shares after a two-year break.

From the end of April onwards, up to one billion euros are to be spent on this within a year.