Munich Re nonetheless sees reinsurance pricing as enticing and its CFO Christoph Jurecka stated at present that the corporate is “completely ready” to continue to grow into US property disaster dangers, so long as the enterprise meets its necessities on phrases, circumstances and value.
The corporate additionally stated that, “Regardless of market stress growing, Munich Re expects the surroundings to stay optimistic within the upcoming July renewal spherical.”
Requested in regards to the outlook for reinsurance pricing throughout an analyst name at present, Munich Re’s CFO Christoph Jurecka stated that total it “continues to be very enticing.”
“The mix of 1.1 and 1.4 can be lower than a share level decline from a historic very excessive degree, which suggests it’s nonetheless certainly a really enticing degree,” he defined. “Then, it’s all danger adjusted, so in these value change numbers, as we interpret them and as we talk them, the change in publicity, but additionally the change within the danger, for instance, resulting from local weather change mannequin updates and all these form of issues, is all included in there already. So, you must additionally maintain that in thoughts.”
Waiting for the mid-year reinsurance renewals, Jurecka stated, “We’re nonetheless in very enticing territory, and margins are enticing and this must be saved in thoughts additionally after we discuss quantity, as a result of clearly there’s a shopper relationship, and we need to serve and can serve our shoppers additionally going ahead.”
He continued, “I believe I can solely summarise that we proceed to be optimistic for 1.6, 1.7 that the markets will proceed to be enticing for us and can permit us to additionally generate enticing margins out of our enterprise going ahead. Based mostly on the very enticing start line the place we’re at, and likewise primarily based on what we noticed, notably 1.1, a bit much less so in 1.4.”
Requested particularly about US property disaster reinsurance renewals and whether or not that’s an space Munich Re would look to proceed rising, Jurecka stated, “US property development, completely.”
“If the enterprise meets our necessities in relation to phrases and circumstances, but additionally value, after all, we’re ready to develop that enterprise,” the CFO defined. “It’s a wholesome enterprise, typically, and as mentioned earlier at present, the margins are nonetheless in a really enticing place, typically talking.
“Now it is going to rely on the renewals, and likewise how the LA wildfire will influence these renewals in 1.6 and 1.7. However sure, typically, we’re completely ready to develop in that space as effectively.”
Additionally learn: Munich Re pegs LA wildfire losses at €1.1bn, cites “market challenges” at April 1st.
