MRE · Board · reinsurance and ERGO · Europe
Munich Re
Wide room for manoeuvre · updated 30 October 2026
What they did
On 23 October it announced preliminary third-quarter net profit of about €1.7 billion and raised its 2026 profit target from €6.3 billion to €6.6 billion; the nine-month result is €5.7 billion. In Baden-Baden on 15 October it called traditional reinsurance the cornerstone of capacity, saying the ratio of traditional to alternative capital has risen from 3.5 times in 2017 to about 4 times. In February 2026 it shut its Eden Re and Leo Re sidecars and kept about $600 million of traditional retrocession.
Why
Major losses in property-casualty reinsurance came in below expectations and investment results were strong. Its Solvency II ratio stood at 292% at end-March, well above its target of over 200%; by keeping risk on its own balance sheet the company is reducing its reliance on the retrocession market.
What they must do
With property catastrophe prices falling 10–15% at 1 January, it has to defend capacity through price discipline. Depending on how major losses develop, it needs to decide on balance-sheet strengthening in the fourth quarter; the amount has not been disclosed.
What comes next
The final third-quarter report on 12 November and its fourth-quarter reserving statement come first. The capacity decision on European and Turkish earthquake programmes at the 1 January 2027 renewal comes second; the company has raised its net exposure to Turkish earthquake scenarios by 10% a year since 2020.
Preference
Keep risk on its own balance sheet, hold terms and give way on price selectively.
Observed behaviour
It turns record profit into balance-sheet strength rather than growth, and puts traditional capacity ahead of alternative capital.
Sources
- Munich Re — Munich Re reports quarterly net profit of €1.7bn and raises full-year guidance (23 October 2026)
- Munich Re — Traditional reinsurance remains the cornerstone amid growing market complexity (15 October 2026)
- Insurance Business — Munich Re backs traditional reinsurance with its own balance sheet (15 October 2026)
- Reinsurance News — 10-15% rate declines signalled for 2027 (1 October 2026)