MUNICH (dpa-AFX) - German reinsurer Munich Re (0KFE.L) on Thursday reported higher second-quarter profit, driven by exceptionally low major-loss expenditure in its property-casualty reinsurance business and a strong investment result. The company maintained its full-year 2026 profit guidance but lowered its insurance revenue outlook.
Net profit increased to €2.211 billion from €2.085 billion a year earlier.
Insurance revenue from insurance contracts issued edged up to €14.939 billion from €14.775 billion.
The total technical result declined to €2.545 billion from €3.035 billion, reflecting an exceptionally strong comparative quarter last year
Operating profit decreased to €2.795 billion from €2.917 billion.
The Solvency II ratio improved to 304% at the end of the quarter from 298% at December 31, 2025. Annualised return on equity (RoE) was 25.5%, unchanged from a year earlier.
The reinsurance segment contributed €1.890 billion to group net profit. Within the segment, property-casualty reinsurance generated net profit of €1.252 billion, up from €1.193 billion, supported by exceptionally low major-loss expenditure, while the combined ratio rose to 68.9% from 61.0%.
Life and health reinsurance reported a total technical result of €528 million, up from €305 million, with net profit increasing to €489 million from €344 million.
Global Specialty Insurance posted net profit of €149 million, down from €296 million, while its combined ratio increased to 88.9% from 77.9%.
The ERGO segment reported net profit of €321 million, up from €251 million, benefiting from higher investment income. Insurance revenue from insurance contracts issued increased to €5.497 billion from €5.146 billion.
The investment result rose to €3.159 billion from €2.187 billion a year earlier.
For 2026, Munich Re reaffirmed its net profit target of €6.3 billion but lowered its group insurance revenue forecast to €62 billion from the previous €64 billion, and reduced its reinsurance revenue outlook to €38 billion from €40 billion.
On XETRA, Munich Re shares closed up 1.48% at €522.60 on Thursday.
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