Profits up 62.4% as combined ratio drops to 95.3%

Munich Re announced a profit of €2.56bn, up 62.4% from €1.58bn last year and said it would make a profit of more than €2bn again in 2010 despite Chile earthquake and Xynthia storm costs.

In reinsurance operating profits was up 8.9% and the combined ratio fell from 99.4% to 95.3%.

Financial highlight €m (2008 in brackets)

  • Gross premiums written 41,423 (37,829)
  • Net earned premiums 39,526 (35,724)
  • Net expenses for claims and benefits 32,392 (28,716)
  • Technical result 2,747 (2,756)
  • Non-technical result 1,974 (1,078)
  • Operating result 4,721 (3,834)
  • Consolidated profit 2,564 (1,579)


  • Gross premiums written 24,823 (21,869)
  • of which property-casualty 15,081 (14,739)
  • Combined ratio in 95.3% (99.4%)
  • Technical result 1,945 (1,557)
  • Operating result 4,164 (3,822)
  • Result 2,555 (2,400)

Primary insurance

  • Gross premiums written 17,516 (16,998)
  • Combined ratio in 93.1% (90.9%)
  • Technical result 854 (1,332)
  • Operating result 926 (991)
  • Result 375 (156)

Nikolaus von Bomhard, chairman of the board of management said: “We have brought the financial year 2009 to a successful close: with a profit of over €2.5bn, we were even able to surpass expectations and achieve our long-term return target despite the difficult environment.”

“For our primary insurance group, establishing the ERGO brand in the German market is the greatest challenge and opportunity. With its new brand presence, ERGO is making its all-round range of products more visible.”


“Together with our clients, we devise needs-oriented and sophisticated solutions. That helps make them – and therefore us – successful. Trends have to be identified early and future risks made controllable.”

The objective is “to create added value for clients wherever possible, be it through innovative products or concepts for capital relief.”

“Known risks are assuming new dimensions, while at the same time risks no one had previously thought of are emerging – for example through technological innovation.”

Demographic development, increasing risk awareness and greater risk aversion are creating additional demand for insurance coverage. “That makes Munich Re a reliable and preferred partner for clients and creates value for our investors”, he said.

Reinsurance details

The bush fires that struck southeast Australia at the beginning of February 2009 were the largest loss event, costing Munich Re a total of €97m. Claims burdens from credit and surety reinsurance business amounted to €510m for the year as a whole.