Munich Re aims for combined ratio of 98% in 2015

Munich Re announced Wednesday it is “aiming for” a combined ratio this year, in property & casualty reinsurance, of about 98%, five points higher than its P&C combined ratio last year.

In its outlook for 2015, Munich Re said it “anticipates major losses in the order of almost 2 billion” euros in P&C reinsurance.

The euro closed Wednesday at $1.356 Canadian.

When Munich Re released its 2014 financial results Feb. 5, the company reported its combined ratio for 2014 was 92.7%.

“As claims notifications for so-called basic losses remained significantly below the expected level overall, Munich Re released reserves,” the company reported of its P&C reinsurance in its 2014 results.

On Wednesday, Munich Re stated it is “targeting a profit” in the range of 2.5 to 3 billion euros for 2015.

“Looking back, 2014 was a good year for Munich Re despite widespread uncertainty,” Munich Re CEO Nikolaus von Bomhard (pictured) stated in the release Wednesday.

Munich Re stated it “anticipates that market interest rates will remain very low overall in 2015, with correspondingly lower regular income from fixed-interest investments.”

Across the industry, insured losses from natural catastrophes were 38% lower in 2014 than the decade average, reported Impact Forecasting LLC, a subsidiary of Aon plc, in January.

Related: Natural catastrophe insured losses $31 billion in 2014, below 30-year average: Munich Re

“Insured losses for 2014 were among the lowest recorded in years,” stated James Waller, a research scientist for reinsurance broker Guy Carpenter & Company LLC, in a press release last month. Guy Carpenter’s Global Catastrophe Review reported industry-wide losses.

“Only one hurricane in the North Atlantic Basin made landfall on the North American mainland,” Guy Carpenter said Feb. 24 its Global Catastrophe Review. “The first hurricane of the season, Hurricane Arthur, made landfall along the North Carolina Outer Banks, but did not render widespread or excessive damage.”