Munich Re

The German reinsurer’s performance “will decline” this year amid Covid-19 turmoil.

Christoph Jurecka said he was "not sure if I buy in" to high-end loss estimates that Covid-19 will be the biggest catastrophe loss ever.

Catastrophe losses were EUR208mn, up 6.6 percent from last year.

The carrier said its solvency ratio remains within its target range.

Munich Re will provide initial capacity but ILS investors have been approached for future cover.

But the carrier’s CEO stressed the importance of moderation in the price hikes.

The carrier noted that the nat cat loss figure for 2019 was EUR2.05bn, almost double that of the year before.

Reinsurers pegged 2019 nat cat losses 23 percent lower than the 10-year average, but prior-year disasters created headlines.

Sidecar capacity is likely to be down by at least 20 percent year on year after a renewal in which ILS investors have pulled back significant capacity, sources estimated.

The funds raised for Eden Re II this renewal have reached $285mn down from $300mn last year.

The reinsurer pegged 2019 cat losses at $52bn, in line with long-term averages but 40 percent lower than 2018.

The vehicle sits alongside Munich Re's more broadly placed Eden Re sidecar.