The financial consequences from the war in Ukraine and sanctions against Russia have severely affected Munich Re’s first quarter, the reinsurer revealed in its latest results today (May 10).

Chief financial officer Christoph Jurecka said the reinsurer had made write-downs for impairment losses on Russian and Ukrainian bonds and had recorded the first claims from the war.

But despite the uncertainties of a challenging environment, “Munich Re maintains its annual guidance of €3.3bn ($A5bn) based on a quarterly profit of more than €600m”, he said.

Major losses of more than €10m each totalled €667m – down 25% on 4Q21 – and included gains from the settlement of major losses from previous years of about €100m.

April renewals yielded another 7.6% premium growth as prices remained high.

Major-loss expenditure corresponded to 9.2%, (down from 15.5%) of net earned premiums and so was below the long-term average expected value of 13%.

Man-made major losses dropped 25.10%, to €185m in the period, while major losses from natural catastrophes was down 25.54%, to €481m.

Heavy rainfall in eastern Australia resulted in losses of about €440m while European winter storms produced losses slightly below €120m.

Munich Re was still looking forward to a positive reinsurance business for FY2022 after its projected gross premium was adjusted 5.5% upwards, to €45bn.

That also raised the overall forecast for the group to €64bn. Munich Re’s other 2022 group targets stated in its 2021 Group Annual Report remained unchanged and was still aimed at a consolidated result of €3.3bn for FY2022.

But the reinsurer said all forecasts and targets faced considerable uncertainty, particularly because of “fragile macroeconomic developments, volatile capital markets and the unclear future of the pandemic” as well as the  

uncertainty over the financial impact of the Russian war of aggression in Ukraine.