Munich Re 2021 profit reaches €2.9bn
Munich Re today reported a consolidated profit of €2.9bn for 2021, marginally above its €2.8bn target and more than double the prior-year result. The reinsurer also used the year to launch its Ambition 2025 strategy, setting a new multi-year framework alongside the rebound in earnings.
Profit rebound and earnings metrics
Munich Re’s consolidated result reached €2.932bn in 2021, up from €1.211bn in 2020, as the group recovered from the prior year’s lower earnings base. Earnings per share were €20.93, reflecting the stronger bottom line.
The operating result came in at €3.517bn, providing the core earnings capacity from which the higher consolidated profit was generated. Management said the €2.9bn annual result meant Munich Re surpassed its stated profit target of €2.8bn for the year.
Premium growth and pricing
Gross premiums written increased to €59.567bn in 2021 from €54.890bn in 2020, as Munich Re expanded volumes across its book. The group reported premium growth of 11.7% for the year, supported by a 2.3% rise in prices.
Net earned premiums rose to €55.202bn compared with €51.223bn in 2020, tracking the higher written premium volumes through to the income statement. Munich Re said the premium and price development formed part of the early delivery against its Ambition 2025 framework.
Claims, major losses and technical provisions
Net expenses for claims and benefits were €45.383bn in 2021, up from €43.077bn in 2020, reflecting the higher scale of the portfolio and the impact of large events. Within this, major losses on a net basis totalled €4.304bn for the year.
Net technical provisions increased to €89.461bn from €78.190bn in 2020, as Munich Re strengthened its balance sheet reserves in line with portfolio growth and claims experience. The higher technical provisions sit against the expanded premium base and the major loss burden reported for the period.
