Based on Joachim Wenning, CEO and Chair of the Board of Administration at Munich Re, the optimistic tendencies skilled in reinsurance during the last 12 months are usually not anticipated to weaken through the remaining renewals of 2024.
In his letter to shareholders at yesterdays Munich Re AGM, Wenning defined that reinsurance has been notably good for Munich Re during the last 12 months or so.
Commenting on 2023, Wenning stated, “Insurance coverage income on this discipline rose to about €38bn, pushed by natural development notably in pure catastrophe enterprise and specialty insurance coverage.
“Reinsurance as a complete contributed practically €3.9bn to the Group’s 2023 web outcome. Let me put this straight: these figures are spectacular.”
This regardless of the P&C reinsurance outcome being “weighed down by excessive pure catastrophe losses,” though hurricane season was comparatively benign there have been “quite a few extreme convective storms in North America and Europe particularly induced unprecedented losses,” Wenning went on to elucidate.
Munich Re, like different main reinsurers, has taken the chance to develop its P&C reinsurance enterprise via the laborious market circumstances and Wenning doesn’t count on any fast reversion to reinsurance fortunes, for his agency at the least.
Wanting forward, the Munich Re CEO defined, “We’re assured that the beneficial market atmosphere for property-casualty reinsurers will proceed all through 2024.”
He continued to elucidate that, in 2024, “The renewals at 1 January have been optimistic for us. We managed to proceed the earlier 12 months’s very excessive stage of profitability and additional improve the standard of our portfolio.”
Including, “What’s extra, we don’t anticipate this pattern to weaken throughout this 12 months’s remaining renewal rounds.”
So, Munich Re is anticipating stability at the least, general on the upcoming reinsurance renewals of June and July 2024, it appears.
With such a broadly diversified and world ebook, that’s maybe no shock, as whereas some areas of the market could also be softening, equivalent to top-layer disaster dangers, it’s clear that different areas of reinsurance are set to stay steady, in pricing phrases, whereas others proceed to catch-up with main charge tendencies as properly.
All in, a optimistic outlook from the CEO of one of many largest firms within the business, which ought to maybe assist to settle any nerves {that a} wholesale, capital inflow triggered softening may very well be on the horizon.
