Munich Re optimistic estimations for 2019-2020

After recording a net result in 2018 six times higher than 2017, Munich Re is optimistic for the upcoming two years.

For 2019, the global leader intends to reach 49 billion EUR (55.82 billion USD) of gross premiums which represents 31 billion EUR (35.31 billion USD) in reinsurance and 17 billion EUR (19.36 billion USD) in direct reinsurance.

The leader also aims at making a net profit of 2.5 billion EUR (2.84 billion USD), an increase by 200 million EUR (227.84 million USD) compared to the previous year. These profits will break as follows :

• 2.1 billion EUR (2.39 billion USD) for the reinsurance activity , including 500 million EUR (569.61 million USD) emanating from the life class of business.
• 400 million EUR (455.69 million USD) for direct insurance via the company ERGO In order to reach this last goal, the group might consider buying back its own shares on the market for one billion EUR (1.14 billion USD).

According to Munich Re's forecasts , the combined ratio will gain points in 2019 to reach nearly 98%.

The German reinsurer is even more optimistic for 2020. The group is targeting 2.8 billion EUR (3.19 billion USD) of profit.

* During the general assembly of May 2019 Munich Re will suggested an increase of its dividend at 9.25 EUR (10.53 USD).

Read also | Munich Re: 2018 result