(Bloomberg) -- Munich Re is targeting net income of €6 billion ($6.3 billion) next year as it expects to benefit from “good operational performance in all business segments.”
Insurance revenue is expected to reach €64 billion and return on investment is forecast to improve to more than 3.0%, the Munich-based reinsurer said in a statement on Friday. The outlook follows Munich Re’s guidance last month that it still expects to surpass its profit goal of €5 billion this year.
Chief Executive Officer Joachim Wenning is betting on organic growth, a diversified business portfolio and disciplined underwriting to improve earnings, as challenges from climate change are mounting. Globally, natural catastrophes caused about $62 billion of insured losses in the first half of 2024, roughly 70% above the 10-year average, Munich Re said in a report in July.
Rising temperatures are “likely to increase the frequency and severity of weather claims,” Bloomberg Intelligence analysts Charles Graham and Kevin Ryan wrote in a note last month.
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