Latest news with #ChristophJurecka
Yahoo
14-05-2025
- Business
- Yahoo
Munchener Ruckversicherungs-Gesellschaft AG (MURGF) Q1 2025 Earnings Call Highlights: Resilient ...
Net Earnings: EUR1.1 billion. Running Yield: 3.5%. Return on Investment (ROI): 2.2% overall; 1.7% at ERGO, 2.9% in reinsurance. Currency Losses: EUR500 million due to US dollar devaluation. Reinvestment Yield: Increased to 4.6%. Life and Health Technical Result: EUR608 million. LA Wildfire Losses: EUR1.1 billion total; EUR0.8 billion in P&C reinsurance. Combined Ratio: 83.9% with a discount benefit of around 10%. April Renewals Premium Expansion: More than 6%. Price Decline: 2.5% overall; 1.7% excluding business mix effects. Global Specialty Insurance Net Result: EUR182 million in 2024. ERGO Net Result: EUR241 million. ERGO Germany Segment Result: EUR140 million. ERGO International Business Net Result: EUR100 million. Solvency II Ratio: 285%. 2025 Net Result Outlook: About EUR6 billion. Warning! GuruFocus has detected 6 Warning Sign with MURGF. Release Date: May 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Munchener Ruckversicherungs-Gesellschaft AG (MURGF) reported a resilient Q1 result with net earnings of EUR1.1 billion, demonstrating strong diversification of earnings drivers. The life and health total technical result significantly exceeded expectations, driven by positive experience in the US portfolio. The reinvestment yield increased to 4.6%, providing further support for an uptrend in the running yield. ERGO delivered a pleasing net result of EUR241 million, slightly ahead of expectations, with strong performance in Life and Health segments. The Solvency II ratio remained stable at 285%, reflecting a strong economic position despite a EUR2 billion share buyback. High large losses, fair value changes in investment results, and significant currency movements negatively impacted net earnings. The ROI was burdened by negative fair value changes of fixed income instruments, particularly affecting ERGO with an ROI of 1.7%. Currency losses amounted to around EUR500 million due to the devaluation of the US dollar. The combined ratio for Global Specialty Insurance (GSI) was elevated at 95.5% due to major losses, including LA wildfire claims. The business mix effects and an increase in the loss component negatively impacted the basic loss ratio. Q: Can you provide an outlook for the midyear renewals and your approach to volume versus margin? A: Christoph Jurecka, CFO, explained that while it's early days, the market remains attractive with less than a 1% price decline so far. The company prioritizes client relationships and profitability, and decisions are made based on discussions with clients rather than a top-down approach. Q: How do you view the use of reserving buffers in a softening cycle? A: Christoph Jurecka emphasized that while buffers are available for volatility, they are not intended to support earnings in a prolonged soft market. The focus remains on maintaining profitability without relying on reserves for cross-subsidization. Q: Can you explain the experience variance in Life Re's Q1 results? A: The positive experience variance was driven by favorable developments in US mortality, disability, and LTC, along with fewer large losses. However, Christoph Jurecka cautioned that this is not expected to be a recurring trend. Q: How did the Solvency II ratio remain stable despite the share buyback? A: The Solvency II ratio remained stable due to strong operating performance and significant new business in life and health, which increased own funds. The methodology does not include a dividend accrual, allowing the company to offset the EUR2 billion share buyback. Q: What is the plan to achieve the 90% combined ratio target for Global Specialty Insurance (GSI)? A: The 90% target is based on IFRS numbers without internal reinsurance. While large losses have impacted results, the underlying profitability aligns with the target. The company is focused on profitability and implementing pricing and underwriting actions. Q: What is your appetite for US long-term care (LTC) business? A: Christoph Jurecka stated that the company's appetite for LTC is generally low, with a preference for mortality business. The large transactions in the quarter did not include LTC. Q: How do you view the FX headwind and its impact on revenue growth targets? A: The FX headwind has made growth targets more challenging, but it's too early to revise them. The company actively manages its US dollar position and reduced its long position in Q1. Q: Can you comment on the potential impact of US tax changes on remittances? A: Christoph Jurecka expressed concerns about the global minimum taxation and potential US retaliatory measures. The company is flexible in its business operations and can adapt to mitigate potential impacts. Q: How do you view the current pricing level in historical context? A: The current pricing level remains very attractive, with less than a 1% decline from a historically high level. The market is still far from a soft market, indicating early signs of softening from an extremely hard market. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
14-05-2025
- Business
- Yahoo
Munchener Ruckversicherungs-Gesellschaft AG (MURGF) Q1 2025 Earnings Call Highlights: Resilient ...
Net Earnings: EUR1.1 billion. Running Yield: 3.5%. Return on Investment (ROI): 2.2% overall; 1.7% at ERGO, 2.9% in reinsurance. Currency Losses: EUR500 million due to US dollar devaluation. Reinvestment Yield: Increased to 4.6%. Life and Health Technical Result: EUR608 million. LA Wildfire Losses: EUR1.1 billion total; EUR0.8 billion in P&C reinsurance. Combined Ratio: 83.9% with a discount benefit of around 10%. April Renewals Premium Expansion: More than 6%. Price Decline: 2.5% overall; 1.7% excluding business mix effects. Global Specialty Insurance Net Result: EUR182 million in 2024. ERGO Net Result: EUR241 million. ERGO Germany Segment Result: EUR140 million. ERGO International Business Net Result: EUR100 million. Solvency II Ratio: 285%. 2025 Net Result Outlook: About EUR6 billion. Warning! GuruFocus has detected 6 Warning Sign with MURGF. Release Date: May 13, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Munchener Ruckversicherungs-Gesellschaft AG (MURGF) reported a resilient Q1 result with net earnings of EUR1.1 billion, demonstrating strong diversification of earnings drivers. The life and health total technical result significantly exceeded expectations, driven by positive experience in the US portfolio. The reinvestment yield increased to 4.6%, providing further support for an uptrend in the running yield. ERGO delivered a pleasing net result of EUR241 million, slightly ahead of expectations, with strong performance in Life and Health segments. The Solvency II ratio remained stable at 285%, reflecting a strong economic position despite a EUR2 billion share buyback. High large losses, fair value changes in investment results, and significant currency movements negatively impacted net earnings. The ROI was burdened by negative fair value changes of fixed income instruments, particularly affecting ERGO with an ROI of 1.7%. Currency losses amounted to around EUR500 million due to the devaluation of the US dollar. The combined ratio for Global Specialty Insurance (GSI) was elevated at 95.5% due to major losses, including LA wildfire claims. The business mix effects and an increase in the loss component negatively impacted the basic loss ratio. Q: Can you provide an outlook for the midyear renewals and your approach to volume versus margin? A: Christoph Jurecka, CFO, explained that while it's early days, the market remains attractive with less than a 1% price decline so far. The company prioritizes client relationships and profitability, and decisions are made based on discussions with clients rather than a top-down approach. Q: How do you view the use of reserving buffers in a softening cycle? A: Christoph Jurecka emphasized that while buffers are available for volatility, they are not intended to support earnings in a prolonged soft market. The focus remains on maintaining profitability without relying on reserves for cross-subsidization. Q: Can you explain the experience variance in Life Re's Q1 results? A: The positive experience variance was driven by favorable developments in US mortality, disability, and LTC, along with fewer large losses. However, Christoph Jurecka cautioned that this is not expected to be a recurring trend. Q: How did the Solvency II ratio remain stable despite the share buyback? A: The Solvency II ratio remained stable due to strong operating performance and significant new business in life and health, which increased own funds. The methodology does not include a dividend accrual, allowing the company to offset the EUR2 billion share buyback. Q: What is the plan to achieve the 90% combined ratio target for Global Specialty Insurance (GSI)? A: The 90% target is based on IFRS numbers without internal reinsurance. While large losses have impacted results, the underlying profitability aligns with the target. The company is focused on profitability and implementing pricing and underwriting actions. Q: What is your appetite for US long-term care (LTC) business? A: Christoph Jurecka stated that the company's appetite for LTC is generally low, with a preference for mortality business. The large transactions in the quarter did not include LTC. Q: How do you view the FX headwind and its impact on revenue growth targets? A: The FX headwind has made growth targets more challenging, but it's too early to revise them. The company actively manages its US dollar position and reduced its long position in Q1. Q: Can you comment on the potential impact of US tax changes on remittances? A: Christoph Jurecka expressed concerns about the global minimum taxation and potential US retaliatory measures. The company is flexible in its business operations and can adapt to mitigate potential impacts. Q: How do you view the current pricing level in historical context? A: The current pricing level remains very attractive, with less than a 1% decline from a historically high level. The market is still far from a soft market, indicating early signs of softening from an extremely hard market. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
13-05-2025
- Business
- Yahoo
Munich Re reports wildfire losses but sticks with profit outlook
Munich Re's shares dropped by around 5% this morning in Europe, after the reinsurer company reported a steep fall in its first-quarter net profit. The net result came in at €1.09 billion in the first quarter of 2025. This compares with €2.12bn in the previous year. According to the German reinsurer's quarterly report, the drop in earnings was mainly driven by major claims and the volatility in the capital markets. Wildfires in Los Angeles were the main source of a major loss of expenditure, costing the company €1.1bn. According to reinsurance broker Gallagher Re's latest Natural Catastrophe and Climate Report, the Los Angeles wildfires accounted for an estimated $65bn in economic losses and up to $40bn in insured losses. 'Although Munich Re did not emerge unscathed from the devastating wildfires in Los Angeles in January 2025, we nevertheless managed to generate a quarterly profit of €1.1bn,' Munich Re's CFO, Christoph Jurecka, said. 'This exemplifies the Munich Re Group's resilience, boosted once again by the prudent management of our business portfolio.' Beyond the losses caused by the US wildfires, the company's investment result was also driving down the overall result, coming in at €1.32bn for the first three months, down from €2.16bn in the previous year, mainly due to noticeable swings in interest rates. Related Belgian insurer Ageas acquires UK's Esure from Bain Capital for €1.5bn California wildfire costs set to impact European reinsurance giants The company also lost half a billion euros in currency exchange, mainly driven by the impact of the weakening dollar. Insurance revenue from insurance contracts rose to €15.8bn. Within this segment, the group's own ERGO, one of the largest insurance groups in Europe, brought in one-third of this revenue and showed particularly strong growth in international business. Ergo International increased its revenue by the fastest rate among Munich Re's divisions, by 8.8%, compared to the previous year. ERGO has recently gained access to the US small business insurance market after Munich Re acquired Next Insurance in March. This could boost the overall earnings of Munich Re, which has just reaffirmed its fiscal outlook. 'We're sticking with our profit guidance of €6bn for the 2025 financial year – thanks in no small part to ongoing favourable market conditions and the high quality of our portfolio,' Jurecka said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Euronews
13-05-2025
- Business
- Euronews
Sixt shares plummet as firm remains unprofitable despite softer losses
Shares in Sixt had dropped by almost 4% on Tuesday as of around midday, after the mobility firm shared a mixed earnings report. The company posted a revenue of €858.1 million in the first quarter of 2025, an annual increase of 10%. Revenue in the German division remained stable over the year, coming in at €243.3m, while revenue growth in Europe as a whole was more promising. It rose 13.8% year-on-year to €296.5m. Despite softer losses, Sixt remains unprofitable, with earnings before taxes coming to -€17.6m, after a total of -€27.5m seen in the same period a year earlier. Consolidated net income after taxes came to -€12.6m, after -€23.1m in 2024. 'Sixt is maintaining its expansion course for all regional segments, with profitable growth remaining the top priority,' the firm said in its earnings report. It continued: 'Sixt expects demand for its mobility products to continue to rise in the current financial year. Therefore, Sixt confirms its forecast for the 2025 financial year of being able to increase revenue in a range of 5% to 10% and also expects to achieve a significantly higher EBT margin in the region of 10% in the 2025 financial year compared to the previous year.' Munich Re's shares dropped by around 5% this morning in Europe, after the reinsurer company reported a steep fall in its first-quarter net profit. The net result came in at €1.09 billion in the first quarter of 2025. This compares with €2.12bn in the previous year. According to the German reinsurer's quarterly report, the drop in earnings was mainly driven by major claims and the volatility in the capital markets. Wildfires in Los Angeles were the main source of a major loss of expenditure, costing the company €1.1bn. According to reinsurance broker Gallagher Re's latest Natural Catastrophe and Climate Report, the Los Angeles wildfires accounted for an estimated $65bn in economic losses and up to $40bn in insured losses. 'Although Munich Re did not emerge unscathed from the devastating wildfires in Los Angeles in January 2025, we nevertheless managed to generate a quarterly profit of €1.1bn,' Munich Re's CFO, Christoph Jurecka, said. 'This exemplifies the Munich Re Group's resilience, boosted once again by the prudent management of our business portfolio.' Beyond the losses caused by the US wildfires, the company's investment result was also driving down the overall result, coming in at €1.32bn for the first three months, down from €2.16bn in the previous year, mainly due to noticeable swings in interest rates. The company also lost half a billion euros in currency exchange, mainly driven by the impact of the weakening dollar. Insurance revenue from insurance contracts rose to €15.8bn. Within this segment, the group's own ERGO, one of the largest insurance groups in Europe, brought in one-third of this revenue and showed particularly strong growth in international business. Ergo International increased its revenue by the fastest rate among Munich Re's divisions, by 8.8%, compared to the previous year. ERGO has recently gained access to the US small business insurance market after Munich Re acquired Next Insurance in March. This could boost the overall earnings of Munich Re, which has just reaffirmed its fiscal outlook. 'We're sticking with our profit guidance of €6bn for the 2025 financial year – thanks in no small part to ongoing favourable market conditions and the high quality of our portfolio,' Jurecka said.
CNBC
13-05-2025
- Business
- CNBC
German reinsurers took a $1.9 billion profit hit from LA wildfires in first quarter
Germany's biggest reinsurers took a $1.9 billion profit hit in the first quarter from claims related to the recent Los Angeles wildfires. Munich Re, the world's largest reinsurance company, said Tuesday that it anticipated all claims attributable to the wildfires will total around 1.1 billion euros. Meanwhile, Hannover Re, the world's third largest reinsurer, said its largest net individual loss amounted to 631.4 million euros on the back of the wildfires. Combined, the two companies' wildfire costs amounted to around 1.73 billion euros, or $1.9 billion. Reinsurance firms offer policies to primary insurance providers, who typically deal directly with customers on the ground. Reinsurance policies usually only kick in after about 400 million euros ($444.4 million) worth of losses are absorbed by the primary insurance provider. Around 80% of Munich Re's claims arose in the company's property-casualty segment, while around 20% hit the firm's Global Specialty Insurance division. In both divisions of the business, the LA wildfires were the largest single claims event in the three months to March. The influx of wildfire claims saw overall claims expenditure in Munich Re's property-casualty segment more than double, pulling quarterly net profit in the division 72% lower year-on-year to 343 million euros. In the company's Global Specialty Insurance division, net profit nosedived 95% to 8 million euros. Despite the hit, the group reported an overall net profit of 1.1 billion euros, down 48% from the previous year. CFO Christoph Jurecka acknowledged that Munich Re "did not emerge unscathed from the devastating wildfires in Los Angeles," but argued that the group's earnings demonstrated resilience and "prudent management" of the firm's business portfolio. "We're sticking with our profit guidance of €6bn for the 2025 financial year – thanks in no small part to ongoing favourable market conditions and the high quality of our portfolio," he said in a statement alongside the company's first-quarter report. Frankfurt-listed shares of Munich Re and Hannover Re's stock were both trading around 4% lower Tuesday afternoon, making them the worst performing companies on the European Stoxx 600 index. Hannover Re also posted a drop in net profit for the quarter, with the metric falling 14% to 480.5 million years compared to the previous year. "Payments for large losses reached EUR 764.7 million in the first quarter — driven above all by the California wildfires — and thus came in significantly higher than the envisaged large loss budget of EUR 435 million," Hannover said in its quarterly statement. In a Tuesday morning note, analysts at RBC Europe said their sentiment on Munich Re was negative, although they noted that the company's total losses arising from the wildfires was "lower than the €1.2bn previously indicated due to currency effects and a positive effect from retrocession." Giving the company's target price of 559 euros — little changed from current prices — RBC's analysts said Munich Re had posted mixed first quarter results, with its net income coming in 2% below market consensus. Analysts at J.P. Morgan, meanwhile, said they had a neutral stance on Munich Re, with a price target of 530 euros. "Despite the small miss to expectations, we only see limited potential for downgrades given the limited scale of the miss to consensus," they said. On Hannover Re, Deutsche Bank analysts said the company's strong investment performance had helped it notch a quarterly net income that was 7% above consensus. The lender has a buy rating on Hannover Re stock, with a price target of 279 euros — a premium of around 4% on current prices.
