Munich Re hit with 56% profit dip in Q4

Global reinsurance giant Munich Re took a hard hit from the spate of natural catastrophes that struck during the fourth quarter (Q4) of 2018. The firm today reported Q4 net profit of €238 million (about £209 million) – a 56% drop from €538 million (about £473 million) a year earlier. The drop in Q4 net profit has been strongly attributed to Typhoon Jebi in Japan, which cost the reinsurer approximately €440 million, as well as two wildfires in California, which led to expenditure of around €430 million. As a result, the reinsurer’s combined ratio in the fourth quarter was 105.1% for its reinsurance business, worse than 103.9% the year prior.