Munich Re says its property and casualty (P&C) reinsurance division more than doubled its third-quarter net profit, as catastrophe losses fell sharply in the absence of major natural disaster events. 

P&C net profit in the three months to September rose to €644 million ($1.08 billion) from €309 million ($518 million) a year earlier. 

Major-loss expenditure declined to €770 million ($1.29 billion) from €2.13 billion ($3.57 billion) and the combined ratio improved to 82% from 88.9%. Munich Re says losses were high last year due to Hurricane Ian. 

“Unlike last year, we benefited from a comparatively mild hurricane season in the North Atlantic,” CFO Christoph Jurecka said. 

“Accordingly, major-loss expenditure in property-casualty reinsurance was lower than expected, despite various other natural catastrophes.” 

Man-made major losses fell to €235 million ($394 million) from €460 million ($771 million), while major losses from natural catastrophes dropped to €535 million ($897 million) from €1.67 billion ($2.8 billion).  

The Maui wildfires was the costliest natural catastrophe for Munich Re in the quarter, with losses of around €200 million ($335 million). 

Insurance revenue from P&C insurance contracts issued declined to €6.84 billion ($11.47 billion) from €7.25 billion ($12.16 billion) due to a one-off effect from last year. 

Munich Re’s overall net profit in the third quarter went up 6% to €1.16 billion ($1.94 billion) and insurance revenue from insurance contracts issued dropped slightly to €14.46 billion ($24.25 billion) from €14.64 billion ($24.55 billion) 

The reinsurance business – comprising of P&C and life – recorded a 16.9% rise in profit to €995 million ($1.67 billion). 

Munich Re reiterated its revised guidance for a full-year profit of €4.5 billion ($7.54 billion) after the third-quarter results. The reinsurance raised the guidance last month from €4 billion ($6.7 billion) previously.