As of 31 December 2020, Munich Re [4] recorded a 55.2% decline in net profit which fell from 2.707 billion EUR (3.03 billion USD) in 2019 to 1.211 billion EUR (1.48 billion USD) one year later.
The operating result amounted to 1.986 billion EUR (2.43 billion USD) compared to 3.43 billion EUR (3.84 billion USD) in 2019: a 42% decrease. In 2020, the health crisis alone cost the German reinsurer 3.4 billion EUR (4.1 billion USD). This amount mainly deals with the cancellation or postponement of major events along with Covid-19 related deaths.
The group sustained up to 906 million EUR (1.11 billion USD) of natural disasters’ losses in comparison with 2.053 billion EUR (2.29 billion USD) in 2019.
Hurricane Laura is the most costly disaster. It hit Florida and Louisiana after the Caribbean by late August, generating approximately 280 million EUR (343.9 million USD) in compensations. In 2020, the German reinsurer recorded a 6.7% increase in turnover set at 54.89 billion EUR (67.4 billion USD) compared to 51.457 billion EUR (57.62 billion USD) in 2019.
The solvency ratio was 208%; within the optimum range of 175-220%. Return on equity (ROE) was established at 5.3%.
Munich Re is to pay a dividend of 9.8 EUR (12 USD) per share, equivalent to the dividend paid last year.
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