Munich Re posted a net profit of €4.6 billion ($7.6 billion) last year and is aiming to achieve €5 billion ($8.3 billion) this year.

“In a market environment poised to remain favourable, Munich Re will leverage its position of strength to grow once again and generate even more profits,” the reinsurer said.

Last year, insurance revenue from contracts issued rose to €57.88 billion ($96.1 billion) from €55.38 billion ($92.04 billion) in 2022. The increase was driven by organic growth in the property and casualty (P&C) reinsurance segment and primary insurance business Ergo.

The P&C reinsurance business posted a net profit of €2.44 billion ($4.05 billion), down from €3.42 billion ($5.68 billion) in 2022, but insurance revenue from contracts issued rose to €27.06 billion ($44.97 billion) from €25.32 billion ($42.08 billion).

Major loss expenditure totalled €3.27 billion ($5.43 billion), down from €3.74 billion ($6.21 billion). The largest individual loss for Munich Re was the earthquake in Turkey, with a nominal value of about €700 million ($1.16 billion).

At the January 1 renewals, the reinsurer increased the volume of business written by 3.5% to €15.7 billion ($26.09 billion) and about two-thirds of non-life reinsurance treaty business was renewed.

“Price development was stable overall, and for the most part more than compensated for the higher loss estimates in some areas, which were primarily attributable to inflation and other loss trends,” Munich Re said.

“Primary insurance prices also increased in many markets, with Munich Re benefiting as regards proportional reinsurance contracts. Overall, the high price level of Munich Re’s portfolio was practically unchanged following an increase of just 0.3%.”