German reinsurer Munich Re has reported profits of €589m (£509m) in Q1 2021, up from €221m (£191m) the previous year.
The company said its operating result also increased year-on-year to €798m (£690m), particularly owing to a “considerably lower burden” arising from Covid-19 losses – especially in property-casualty reinsurance.
It added the reinsurance field of business contributed €410m (£354m) to the consolidated result in Q1. The operating result rose to €558m (£482mm) and gross premiums written totalled €9.3bn (£8bn).
In addition, the life and health reinsurance business generated a profit of €52m (£45m) in Q1. The quarterly result was affected by Covid-19-related losses of around €167m (£144m).
Munich Re CFO, Christoph Jurecka, said: “The pandemic has been testing our solidarity and self-discipline every day. The only way to really improve the situation, however, is a more rapid pace of COVID-19 vaccinations. We will do our part at seven Munich Re and ERGO locations in Germany as soon as our company medical staff is permitted to administer vaccinations.
“In business terms, we expect that the impact of the pandemic in 2021 will be limited for Munich Re. On top of the anticipated COVID-19 losses, there was an unusual cold snap in the United States early this year. We are nevertheless on track to meet our annual target of €2.8bn (£2.4bn) thanks to robust operating earnings.”
He added: “The April renewals confirmed that the market environment in reinsurance continues to be favourable, and ERGO’s strong results help boost the group’s profit.”