The net profit of Munich Re [4] reached 2.31 billion EUR (2.64 billion USD) in 2018. An amount six times higher than that of 2017.
This performance was achieved despite a 56% decrease in the fourth quarter of 2018. The cause behind this decline is California Forest Fires [5] (USA) which cost 430 million EUR (491 million USD).
The Reinsurance class of business recorded a result of 1.86 billion EUR (2.12 billion USD) against 120 million EUR (144 million USD) a year earlier. The combined ratio of reinsurance activity was 99.4%.
Direct insurance via the Ergo Company contributed up to 412 million EUR (471 million USD) to the reinsurer’s profit.
Despite the sharp increase in the result, Munich Re recorded a turnover of 49.1 billion EUR (56.2 billion USD) almost equal to that of 2017. The group remains optimistic for the year 2019. The contracts renewed on the first of January of the current year amounted to 10 billion EUR (11.4 billion USD) compared to 9.4 billion EUR (11.2 billion USD) recorded in the previous renewal.