The world’s largest reinsurer, Münchener Rück, reported unprecedented Q2 net profits of €2.09 billion, surging 30% year-over-year, fueled by an unusually low claims burden and strong investment returns. Natural catastrophes cost just €20 million—down from €500 million in 2023—driving the claims ratio to a stellar 61.0%. Rising stock markets further boosted capital investments to €2.2 billion. However, the celebratory figures obscure mounting challenges: the company slashed its 2025 revenue forecast from €64 billion to €62 billion due to pricing pressures and a weakening dollar.
Market Headwinds Emerge
July contract renewals revealed a 2.5% price decline and a 3.2% volume drop as Münchener Rück prioritized margins over risky deals. Currency turbulence compounded woes, with forex losses ballooning to €602 million from €21 million. Despite maintaining its €6 billion annual profit target—already halfway met—analysts question sustainability amid shrinking premiums and volatile markets. The reinsurer’s ability to balance declining margins with record earnings remains under scrutiny.
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