Results

The reinsurer said nat-cat business is one of its most profitable lines but emphasised that it will also chase growth in life and health and Ergo to reduce long-term volatility.

Munich Re’s P&C re unit reported a Q4 consolidated result of EUR648mn ($735mn), a sixfold increase year on year, as the carrier announced 14.5% premium growth at the 1.1 renewals.

Per occurrence coverage grew by $750mn.

The firm’s worldwide cat top layer grew by 75%, but its “top or drop” limit declined 25% and aggregate deductibles increased.

AIG took losses of $28mn for the year from its holding in AlphaCat managed funds.

A$209mn of its A$270mn agg reinsurance deductible remains eroded, in line with prior estimates.

The ILS vehicle delivered a loss of $3.9mn to the parent group.

MGA growth boosted fee income.

The exit of key Florida insurers could spur rate increases.

Gross written premiums grew by nearly 25%, with similar levels of expansion in primary and reinsurance segments.

The carrier cut exposure to both earnings level and highly volatile cat events as it shed risk.

The group reported 75% erosion of its aggregate deductible, below an earlier estimate