S&P EXPECTS MUNICH RE’S COMBINED RATIO TO REACH 103% IN 2020

Standard and Poor’s (S&P) has revised downwards it earnings projection and combined ratio forecast for Munich Re. Following higher-than-expected claims in the first quarter from Covid-19 related event cancellation losses, S&P expects the German reinsurance group to post a combined ratio of 103% in 2020 and an ROE of 3%-6%, as Covid-19 related losses and financial market turbulence hits the reinsurer’s performance. However, S&P expects Munich Re’s earnings to recover during 2021 with the combined ratio returning to a range of 96%-98%. The rating agency affirmed Munich Re’s 'AA-' ratings with a stable outlook.