Munich Re forecasts surge in 2009 profits

Munich Re increased its 2009 profit to €2.56 billion (about Cdn$3.78 billion), marking an increase from 2008’s profit of €1.58 billion, according to the reinsurer’s preliminary calculations.The profit for 2009 Q4 was €780 million (about Cdn$1.15 billion), marking an increase from 2008 Q4’s €110 million (about Cdn$163 million).The combined ratio in reinsurance was 95.3% for 2009, an improvement from the 99.4% reported for 2008.“The reinsurance business profited from exceptionally low claims costs for natural catastrophes (only 1.4% of net earned premiums),” a Munich re release says.Compared with 2008, reinsurance premium income grew by slightly less than 14% to €24.8 billion (about Cdn$36.7 billion). “In primary insurance, the 2009 combined ratio for the property-casualty segment (including legal expenses insurance) amounted to 93.1% [compared to 90.9% in 2008].”Primary insurance reported a “particularly good” combined ratio in 2009 Q4 at 90.0%, compared to 93.8% from the same period of 2008.