Munich Re CEO’s Insights on Reinsurance Pricing
Joachim Wenning, the Chief Executive Officer (CEO) of Munich Re, one of the world’s largest reinsurance companies, stated that overall reinsurance prices remain very attractive, with the firm identifying enough attractive growth markets.
2025 Reinsurance Renewals Update
Munich Re recently reported its full-year 2024 results, which were strong. The company provided an update on the January 1st, 2025, reinsurance renewals, where around two-thirds of its non-life reinsurance treaty business was renewed.
Overall, the reinsurer slightly reduced its volume of business, which declined by 2.4% year-on-year to €15.6 billion. The company explained that it “consistently discontinued business that did not meet our expectations with regard to prices or terms and conditions.”
Reinsurance Pricing and Market Dynamics
In terms of price, Munich Re reported a stable development, maintaining the good price level of its portfolio with a slight decrease of 0.6%.
The reinsurer expects a positive environment during the upcoming April and July renewals and noted that recent natural catastrophe events, such as the Los Angeles wildfires, are “clearly impeding a softening of prices.”
CEO’s Perspective on Market Variability
During a media call discussing the results, the firm was questioned on reinsurance pricing and whether it has peaked.
“An important first statement from me,” said Wenning, “is there is not one market and there is not two markets, there are multiple markets that we need to consider when talking about how attractive markets are, or they aren’t.”
Wenning further explained that geographical differences exist, and within casualty and property lines, variations occur. He emphasized that some markets remain highly attractive, while others have become less so.
Future Outlook and Impact of Wildfires
Wenning concluded, “Overall, it’s very attractive. So, I cannot talk about reinsurance prices peaking or deteriorating or going further up.”
Future renewals will reveal how rates trend across the reinsurance sector, but it’s evident that the California wildfire industry loss, estimated between $35 billion and $50 billion, will impact prices and demand for coverage.
