Munich Re Q3 Net Result EUR 1.74B as Earthquake Lifts Major Losses

Munich Re published its full third-quarter 2026 statement on November 12, filling in the detail behind the preliminary figures it released on October 23. The German reinsurer earned EUR 1.742 billion in the quarter, lower than a year earlier, but its nine-month result climbed to EUR 5.667 billion, and it kept the full-year target of EUR 6.6 billion that it had raised in October. This article summarises the numbers as reported by Artemis and Reinsurance News from the company's statement, explains the main terms, and notes what is not yet known. It is a summary of public information and is not investment advice.

The group result

Munich Re's net result for the third quarter was EUR 1.742 billion, compared with EUR 1.997 billion in the third quarter of 2025. For the first nine months, the result was EUR 5.667 billion, up from EUR 5.176 billion. The preliminary figure in October was approximately EUR 1.7 billion, so the final statement confirms it. Group insurance revenue in the quarter was EUR 16.626 billion, up from EUR 14.575 billion, and for nine months it was EUR 46.583 billion, up from EUR 45.162 billion.

The quarter's total technical result, which measures underwriting profit under IFRS 17, was EUR 2.375 billion, down from EUR 2.822 billion. The operating result was EUR 2.472 billion, against EUR 3.036 billion. Annualised return on equity was 20.2% for the quarter, compared with 24.2% a year earlier, and 21.9% for nine months, compared with 20.8%. The investment result for the quarter was EUR 1.859 billion, against EUR 2.385 billion, a return of 3.2% on average market value.

Property and casualty reinsurance

The largest segment, property and casualty reinsurance, earned EUR 938 million in the quarter, down from EUR 1.187 billion. Its combined ratio, the share of premium that goes to claims and costs, was 80%, compared with 62.7% in the third quarter of 2025. A combined ratio of 80% still means a healthy underwriting profit, but the move from the very low level of the previous year reflects higher major losses. Insurance revenue in the segment was EUR 4.446 billion, up from EUR 4.241 billion. Over nine months, gross revenue was EUR 12.4 billion, down 9%, which Munich Re attributes to currency and renewal effects.

Major losses, meaning large individual claims and catastrophe events counted after retrocession, which is the reinsurance that reinsurers buy for themselves, and before tax, were EUR 646 million in the quarter, compared with EUR 118 million a year earlier. Natural disasters accounted for EUR 514 million of that, and the Colombian El Choco earthquake was the costliest event at EUR 300 million. The company said major losses were 14.9% of net insurance revenue. That is far above last year's 2.9% but below the 18% that Munich Re expects over a full year, so the quarter was still lighter than its planning assumption.

ERGO and other segments

ERGO, the group's primary insurance and health business, earned EUR 263 million in the quarter, compared with EUR 304 million, and EUR 819 million over nine months, compared with EUR 796 million. ERGO's insurance revenue rose to EUR 6.192 billion in the quarter from EUR 5.313 billion, and to EUR 17.36 billion over nine months from EUR 16.019 billion.

Life and health reinsurance improved. Its quarterly net result rose to EUR 340 million from EUR 286 million, and its total technical result to EUR 493 million from EUR 314 million. Global Specialty Insurance earned EUR 201 million, compared with EUR 221 million, with a combined ratio of 83.9% against 82.8%. The whole reinsurance segment, which combines property and casualty with life and health, earned EUR 1.479 billion in the quarter, against EUR 1.693 billion, and EUR 4.849 billion over nine months, against EUR 4.380 billion.

Guidance

In October, when Munich Re released preliminary figures, it raised its net result target for 2026 by EUR 300 million, from EUR 6.3 billion to EUR 6.6 billion, and it kept that figure in the full statement. It also said it expects a net combined ratio in property and casualty reinsurance of below 80% for the year and a ratio below 90% for Global Specialty Insurance. The company noted in October that it may strengthen its balance sheet in the fourth quarter, depending on how major losses develop. Nine months of profit stand at EUR 5.667 billion, so the full-year target implies roughly EUR 0.9 billion in the final quarter, a simple calculation that depends on large losses and market returns.

Chief financial officer Andrew Buchanan said Munich Re achieved profitable growth in the first nine months and that the higher profit target reflects very pleasing operating performance across all business segments.

Why the combined ratio jump is not alarming

A move from 62.7% to 80% sounds large. The earlier figure was unusually low because major losses were only EUR 118 million, a very quiet quarter. An 80% ratio is in line with what the company is guiding for the year, and the major loss ratio of 14.9% was below the 18% it budgets. In plain terms, the third quarter of 2025 was unusually benign and the third quarter of 2026 was closer to normal, with one costly earthquake. Investors and analysts usually look at several quarters together for this reason, since catastrophe losses are lumpy.

What it means for readers

Reinsurance is the layer of protection behind home, car and business insurance. When a large event such as an earthquake hits, reinsurers pay part of the bill, and strong results mean they keep the capacity to do so. For ordinary policyholders the link is indirect. Price changes at the January renewals of reinsurance contracts can eventually influence what primary insurers charge, but each market also depends on local competition and claims. The sources reviewed here do not report reinsurance price changes, so this article makes no prediction.

What to watch next

Watch Munich Re's results for the full year, the pricing and terms of the January 2027 renewals, and the way major losses develop in the fourth quarter, including hurricane or wildfire events. The company publishes its quarterly statements and presentations on its investor relations website. This article summarises public reporting and is not financial advice.