Despite devastating floods and forest fires, the world’s largest reinsurer Munich Re does not shy away from taking on further risks of this kind. “We have an appetite for natural catastrophe risks,” said board member Stefan Golling at the annual reinsurers meeting in Monte Carlo on Sunday.
While some providers have withdrawn from this business, Munich Re is not just focusing on higher premiums. Liability limits and other conditions are often even more important, said Golling. He expects another expensive year of natural disasters in 2023.
At the traditional “Rendez-Vous de September”, reinsurers such as Munich Re, Swiss Re and Hannover Re in the Principality of Monaco have been exploring the prices and conditions for contract renewal at the turn of the year with primary insurers such as Allianz and Axa since the weekend.
In the previous rounds of renewals, the reinsurers had already significantly increased their prices for their customers. In other words: If a primary insurer wants to transfer risks to a reinsurer, they have to pay significantly more than they did just a few years ago. This is also why the rating agencies Standard & Poor’s and Fitch have raised their outlook for the reinsurance industry. The margins in their business have improved and the companies could also benefit from the increased interest rates on the market.
Munich Re expects the reinsurance market to again grow slightly between 2023 and 2025 – even after deducting inflation. However, according to their estimates, the increases are likely to be lower than in the previous three years.
Munich Re and the rating agencies see the major growth market in cyber insurance against damage to computer systems, data and the Internet. The company expects that economic damage from cyber attacks will triple to around $24 trillion by 2027 compared to last year. The board estimates that cyber insurance premiums across the industry will increase two and a half times to $33 billion by then.
There is currently no stopping Munich Re’s shares. On Friday it reached a new multi-year high at 363.60 euros. The next big hurdle now awaits in the form of the all-time high from 2000 at 397.73 euros. THE SHAREHOLDER recommended buying Munich Re shares at EUR 217.00. Let profits run.
(With material from dpa-AFX)
Note on conflicts of interest: The CEO and majority owner of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has directly and indirectly entered into positions on the following financial instruments or related derivatives mentioned in the publication, which may benefit from any price development resulting from the publication: Munich Re .
2023-09-11 05:21:58
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