28th February 2021

Munich Re posts 2020 profit of E1.2bn despite high COVID-19 losses
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Joachim Wenning, chairman of the Board of Management, comments "In spite of the tremendous challenges posed by COVID-19, Munich Re closed out 2020 with a clear profit– and our dividend remains dependable. In 2021, we expect to meet the profit target that we envisaged prior to the pandemic. All the pieces are in place. Our reinsurance business is ideally positioned to resolutely exploit opportunities for profitable growth in the improved market environment. And ERGO is performing well following the successful conclusion of its Strategy Programme. We are refraining from launching a new share buy-back programme at this time, because our shareholders will benefit more from investments in the attractive business opportunities now emerging."
Munich Re generated a profit of E1,211m(2,707m) in 2020, and E212m(217m) in Q4. The 2020 financial year was marked by high losses in connection with COVID-19. In reinsurance, pandemic-related losses totalling E3.4bn were posted, of which E370m was attributable to life and health reinsurance, and slightly over E3bn to property-casualty reinsurance. At ERGO, the negative impact on the result arising from COVID-19 totalled E64m. Adjusted for the above-mentioned losses, the Group would have met its originally envisaged 2020 profit target of E2.8bn, which was retracted in March 2020.
The operating result fell year on year to E1,986m(3,430m), while the other non-operating result amounted to –E83m (–91m). The currency result totalled –E200m(73m), and the effective tax rate was 18.2% 15.1%). Gross premiums written increased by 6.7% year on year to E54,890m (51,457m).
Equity was slightly lower at the end of the reporting period (E29,994m) than at the start of 2020(E30,576m). At the end of the year, the solvency r was approx. 208% (31 December 2019: 237%), and was thus within the targeted, optimum range of 175–220%.
In the 2020 financial year, return on equity (RoE) amounted to 5.3%.

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