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Global Economy

Billions in profit despite pandemic and flood

The world's largest reinsurer Munich Re generated a profit of 2.9 billion euros in 2021, almost two and a half times the previous year's figure. Despite the high burden of natural disasters and the corona pandemic, the DAX member performed more than 100 million euros better than its own profit forecasts.

The burdens from the corona pandemic – mainly due to the cancellation of major events and business interruptions – fell significantly last year. Instead, the group had to dig deep into its pockets for the destruction caused by Hurricane "Ida" and the devastating flood disaster in Europe in July. The burdens added up to around 1.7 billion euros.

In addition, the increasing number of Covid-19 deaths was reflected in the reinsurance of life policies with 785 million euros. In the USA, South Africa and India in particular, significantly more people died than in other years.

More profit planned

For 2022, CEO Joachim Wenning is aiming for a further increase in profits to 3.3 billion euros. The pandemic should therefore only burden the result with 300 million euros. Munich Re had last posted a profit of more than three billion euros in 2015, and the profit mark now forecast would be the highest value since 2013. The company had achieved its absolute peak value in 2007 with almost four billion euros.

Despite the targeted increase in profits in the current year, the group's shares reacted with price losses. The paper slipped in the XETRA electronic trading system at times by more than three percent to EUR 249.25. Because analysts had previously calculated a little more for 2022. After all, the group also announced an increase in the dividend from 9.80 to 11 euros per share.

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