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Profit Slump: California Wildfires Cost Munich Re One Billion Euros
In January, parts of Los Angeles went up in smoke and flames. This is a major loss for the Munich-based DAX company Munich Re.
2025-05-13 12:29:09
USA
Climate Change
Impact of California Wildfires on Munich Re
Image used under license from Shutterstock.com
The devastating wildfires in California have significantly affected Munich Re, resulting in a profit decline of nearly 50% in the first quarter of 2024. The company reported a staggering cost of 1.1 billion euros due to these natural disasters.
Despite this financial hit, Munich Re remains committed to its annual profit target of six billion euros, viewing the fluctuations as part of normal business operations. The impact is not limited to Munich Re; Hannover Rück also faced substantial losses, with its profits dropping 13.9% in the same period.
The financial strain from the wildfires highlights the growing risks associated with climate change and extreme weather events. Both reinsurers, while grappling with these challenges, continue to identify positive business prospects in the future, underscoring their resilience in a volatile market.
The press radar on this topic:
Der Spiegel
Munich Re: California Wildfires Cost Reinsurers Over One Billion Euros
In January, parts of the California metropolis of Los Angeles went up in flames. A major loss also for the Munich DAX company Munich Re.
stern
Profit Collapse: California Wildfires Cost Munich Re One Billion
The devastating wildfires in California last winter have led to a profit collapse of nearly 50% for the reinsurer Munich Re in the first quarter. The natural disaster cost the company 1.1 billion euros. Despite this burden, Munich Re maintains its profit target of 6 billion euros for the entire year. The CFO sees the fluctuations as normal and expects continued positive business opportunities in the coming months.
DER SPIEGEL
Munich Re: California Wildfires Cost Reinsurer Over One Billion Euros - DER SPIEGEL
The wildfires in California last winter caused Munich Re, the reinsurer, to suffer a profit drop of nearly 50% in the first quarter. The costs of the natural disaster amount to 1.1 billion euros. Nevertheless, Munich Re is sticking to its profit target of 6 billion euros for this year. In addition to the wildfires, losses in fixed-income securities and the weak dollar also weighed on the results. Nonetheless, the company continues to see positive business opportunities for the coming months.
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