Munich Re Forecasts 14% Jump in 2022 Profit as It Reports Bounceback From Pandemic

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German reinsurance group Munich Re on Wednesday forecast a 14% jump in profit this year as it reported a bounceback in 2021 from the coronavirus pandemic despite big claims from natural disasters.

Marked by devastating hurricanes and cold snaps in the United States, 2021 was one of the costliest ever for the world’s insurers.

Nevertheless, Munich Re net profit in 2021 more than doubled to 2.9 billion euros ($3.28 billion), up from 1.2 billion euros [$1.4 billion] a year earlier. The figure is in line with analyst expectations but slightly exceeded the company’s own target of 2.8 billion euros.

For the current year, Munich Re forecasts profit of 3.3 billion euros [$3.7 billion].

It said that reinsurance contract renewals at the start of the year rose by the overall volume of premiums as well as by price.

“Propelled by this momentum, we will resolutely tap into the favorable market environment as we increase our profit to 3.3 billion euros in 2022,” Chief Executive Officer Joachim Wenning said.

($1 = 0.8830 euros)

(Reporting by Tom Sims and Alexander Huebner; editing by Riham Alkousaa and Miranda Murray)