Munich Re’s operating result in 2008 down 35.5% from the previous year

The Munich Re Group recorded an operating result of EUR3.3 billion (Cdn$5.3 billion) in 2008 (compared to EUR$5.1 billion, or Cdn$8.2 billion, in 2007), a decrease of 35.5%.
“The marked price losses on the stock markets impacted the investment result, which fell by 36.8% to EUR5.8 billion,” Munich Re reported in a statement.
Gross premiums written rose by 1.5% to EUR37.8 billion (Cdn$60.9 billion). “If exchange rates had remained the same, premium volume would have increased by 5.1% compared with the previous year,” the company reported.
In the Munich Re Group’s primary insurance segment, which largely comprises the ERGO Insurance Group, the operating result for 2008 totaled EUR477 million (Cdn$769 billion), a drop of 61.9%.
“The combined ratio in property-casualty business amounted to a very good 91.2% (93.4%),” the company reported.
In the property-casualty business (including legal expenses insurance), premiums climbed by 4.9% to EUR5.9 billion (Cdn$9.5 billion), driven mainly by international business with a growth rate of 10.1%.
In the reinsurance segment, the company’s operating result decreased by 9.2% to EUR3.8 billion (US$6.1 billion). Altogether, reinsurance contributed EUR2.3 billion to the Group profit.
The combined ratio for 2008 came to 99.5% (96.4% in 2007).
The largest loss events were Hurricanes Ike and Gustav, with a combined claims burden of EUR560 million (Cdn$903 million) after retrocession. The burden from major losses for the whole year totalled EUR1.5 billion (Cdn$2.4 billion), with natural catastrophes accounting for EUR832 million (Cdn$1.3 billion).