Munich Re posts €527 m profits in Q3 2022

By Admin

 

Global reinsurer Munich Re has reported profit of €527 million and €1.9 billion for the third quarter of 2022, respectively, despite a rise in major losses within property and casualty (P&C) reinsurance on the back of Hurricane Ian losses of around €1.6 billion.

Profit for the quarter increased year-on-year, although declined slightly for 9M 2022 as the reinsurer notes above-average expenditure for natural catastrophes.

In fact, major losses of more than €10 million each reached over €2.6 billion in Q3 2022, corresponding to 26.9% of net earned premiums, and higher than the long-term average expected value of 13% for both Q3 and 9M 2022.

The costliest nat cat event for the reinsurer was Hurricane Ian at €1.6 billion. All in all, nat cats cost the reinsurer €1.8 billion in Q3 2022, compared with €1.7 billion in Q3 2021.

At the same time, Munich Re booked man-made losses of €489 million in the period, compared with €245 million a year earlier.
contributed €81 million to the overall result for the third quarter, and €1.2 billion for the first nine months of the year. Munich Re attributes the quarter-over-quarter decline to the cost of Hurricane Ian and also a lower investment result.

Within reinsurance, the operating result came in negative for the quarter at -€687 million, while gross written premiums jumped significantly, year-on-year, to €13.7 billion.

Turning to the ERGO business, and profit reached €446 million for the quarter and €702 million for 9M 2022, which is up significantly for both periods, driven by a one-off effect in the ERGO Life and Health Germany segment. In the third quarter, all segments continued to see premium growth, with total premium income rising to €4.7 billion in Q3, and gross written premiums rising to €4.5 billion.

All in all, Munich Re has announced an operating loss of €346 million for the third quarter, compared with a gain of €204 million a year earlier. The other non-operating result was also negative at -€5 million, while the currency result increased significantly to €846 million, in part as a result of exchange gains on account of the US dollar.

Across the group, gross written premiums increased substantially to more than €18.2 billion for the third quarter, and jumped by 14% to more than €50.9 billion in 9M 2022.

On the asset side of the balance sheet, Munich Re has reported that its investment result dropped from more than €2 billion in Q3 2021 to €904 million in Q3 2022. Overall, the third quarter investment result represented a return of 1.6% on the average market value of portfolio.

Looking ahead, Munich Re says that in light of the “very positive” business performance so far in 2022, it has raised its guidance for gross written premiums in reinsurance to €48 billion from the previous €45 billion, and in ERGO to €19 billion from the previous €18.5 billion. Across the group, the target has increased from €64 billion to €67 billion.

Additionally, the reinsurer is still targeting a consolidated result of €3.3 billion for the 2022 full year, but warns that this will be a lot harder to achieve given the claims experience and business environment. The firm anticipates a consolidated result of €2.5 billion in reinsurance for the year, which is down on the previous target of €2.7 billion. However, at ERGO, the company expects a consolidated result of €800 million for the year, which is up on the previous €600 million target.

In P&C reinsurance, Munich Re now expects to produce a combined ratio of roughly 97% of net earned premiums for the full-year, compared with a previous target of 94%.

In L&H reinsurance, the firm says that it now anticipates a much higher technical result of €800 million for 2022.

Chief Financial Officer (CFO), Christoph Jurecka, commented: “Financial solidity and professional expertise are of fundamental importance to our clients in times of crisis and guide Munich Re in its actions. Hurricane Ian matches the pattern science would expect of a warming world. Therefore the rising probability of such extreme storms is part and parcel of our models and must be reflected in pricing.

“The sustainable and reliable offering our clients expect of us is based on realistic analyses, not only of natural catastrophe risks, but also of cyber and pandemic risks. And although Hurricane Ian and the macroeconomic environment are making it significantly more challenging for us, we are firmly adhering to our annual guidance of €3.3bn. All fields of business are contributing to sustainably positive performance.”

UK warn citizens against traveling to 22 States in Nigeria

By Favour Nnabugwu

 

The United Kingdom has issued a warning to its citizens to avoid traveling to 22 states in Nigeria.

Meanwhile, the European country cleared Abuja from the list but still asked its citizens to apply caution as this may still be connected to the country’s security situation.

This was contained in a press release by the British High Commission, Abuja, on Monday titled, “Updated Foreign Commonwealth Development Office Travel Advice to British Nationals Traveling to the FCT.”

The British High commission noted that the travel advisory is to help its nationals to make better-informed decisions about international and business travel plan without any danger.

According to the statement many of the states are in the northern parts, while some are in the South.

The statement read, “FCDO travel advice exists to inform British nationals so they can make decisions about travelling abroad. There continues to be a number of states in Nigeria where we advise British Nationals against all but essential travel. These include: Bauchi, Kano, Jigawa, Niger, Sokoto, Kogi, Abia, Plateau, Taraba, within 20km of the border with Niger in Kebbi State and non-riverine areas of Delta, Bayelsa and Rivers States.

The UK keeps its travel advice under regular review and in making these assessments, and uses information from a wide range of sources.  The travel advice is constantly reviewed to make sure it reflects the current situation in Abuja and Nigeria.  Although, the FCDO Travel Advice no longer advises against all but essential travel to the Federal Capital Territory, including the city of Abuja, it makes clear that some risks remain.

IICC holds Compulsory Insurance training in Edo State

By Favour Nnabugwu

 

 

The Insurance Industry Consultative Council (IICC) will hold a training on Compulsory Insurances on Thursday in Benin, Edo State

The training which is one of the initiatives of the IICC aimed at actively encouraging Insurance education and penetration, will see participants receive training and sensitization on the categories of compulsory insurances and the enforcement laws governing them.

In a statement made available by Helen Chiamaka Ajeamo, Manager, Communications and Corporate Affairs, the programme will deeply inform participants on the principles of insurance, liability/compulsory insurance, assessment and rating of compulsory insurance and insurance claims administration.

The Chairman of the Insurance Industry Consultative Council, Mr. Edwin Igbiti, In the statement said that the Council is focused on promoting the growth of the Insurance Industry and this is one of the platforms the IICC is leveraging on to achieve this goal.

Igbiti who also the President of the Chartered Insurance Institute of Nigeria, CIIN, said, This training further serves to reiterate the commitment of the IICC to achieving its objectives of Insurance awareness and adoption in Nigeria. With Insurance, you have the ultimate keys to live and work with freedom. A lot of Insurance products and offerings are not being patronised and enforced because of inadequate understanding of insurance Laws, we are passing across invaluable knowledge to the participants at the seminar that will aid the dissemination of their duties.

“The training on compulsory insurance has become a fixture in the Calendar of the Insurance Industry. Last year, it was held in Kano and this time, it is going to be held in Benin, Edo State. We will continue to rotate the regions where the trainings will hold in a bid to ensure that the message reaches every nook and cranny of the country,” he added.

Government parastatals in Edo State and the  Private sector are invited for the programme, according to the statement.

The Insurance Industry Consultative Council was formed in 2013 to act as the unifying voice of the Insurance Industry in Nigeria and to represent it on national issues while taking up and assuming roles that would serve the best interest of the Insurance Industry in Nigeria.

The Council is made up member bodies which include; The National Insurance Commission (NAICOM), Chartered Insurance Institute of Nigeria (CIIN), Nigerian Insurers Association (NIA), Nigerian Council of Registered Insurance Brokers (NCRIB) and the Institute of Loss Adjusters of Nigeria (ILAN).

 

Federal Inland Revenues Services collects N7.5trn taxes in 2022

FIRS collects N7.5trn taxes

 

By Favour Nnabugwu

Chairman, Federal Inland Revenue Service, FIRS, Muhammad Nami says it has collected N7.5 trillion taxes in 2022 and also surpassed the Tertiary Education Tax, EDT fund target for the year with N4 billion.

Nami stated this during its 2022 Tertiary Education Fund, TETFUND/FIRS
joint interactive forum in Kano.

The FIRS boss who was represented by the Kano State Coordinator, Hassan Sule
said the Tertiary Education Tax, EDT target for 2022 was N305 billion but as at September 2022, it has collected N309 billion.

According to him, “It is noteworthy that despite the economic headwinds, particularly from the negative consequences of Covid-19, rising insecurity and the spill-over effects of the Russia-Ukraine war on the global economy, FIRS has continued to make progress in revenue mobilization for the three tiers of government, suffice to say that the FIRS is now funding a significant portion of the Federal Account Allocation Committee, FAAC in the last 2 years.

“Between January to September 2022, FIRS has collected N7.5 trillion which is a significant improvement on the total collection of N6.4 trillion for the entire 2021. Non-oil taxes accounted for N4.3
trillion while petroleum profits tax accounted for N3.1 trillion. It is clear that the reforms undertaken since 2020 have started yielding the desired results.

“Tertiary Education Tax also improved significantly since the beginning of 2022. We have collected N309 billion as of September 2022, which is above the total N305 billion budgeted for the full
year.

“I assure you that we will continue to ensure that no revenue gap is left uncovered in our quest to improve tax administration with particular emphasis on full deployment of technology across our service lines and internal operations,” Nami said.

The FIRS boss also reaffirmed the position of the service noting that
it is not relenting it effort towards achieving the N500 billion Education Tax fund annually target by the TETFUND.

Also, TETFUND Executive Secretary, Arc. Sonny Echono said the fund placed a very high premium on attaining and surpassing the target of N500 billion earlier set.

Echono represented by his Director, Human Resources and General
Administration, Bar. Adamu Abubakar applauded the FIRS for surpassing
the 2022 target noting that due to low EDT in 2021, it scaled down project implementation for the year in our beneficiary institutions in 2022.

“In year 2021, the fund received an EDT collection of N189 billion, which was considerably lower than the previous year’s collection. This posed a serious challenge to the intervention activities of the fund for the year 2022. We had to seriously scale down project implementation for the year in our beneficiary institutions and our
internal operations as well,” he said.

Meanwhile, the fund has a mandate of general improvement of education
in federal and state tertiary educations specifically for the provision or
maintenance of essential Physical Infrastructure for teaching and
learning, Instructional material and equipment, Research and Publications and Academic Staff Training and Development among others.