Munich Re to suffer triple digit million premium loss on war; probing for claims

Munich Re will likely suffer a low triple-digit million loss of premium from the Russian invasion of Ukraine above and beyond the claims impact yet to be tallied, officials have said.

“Due to the non-continuation of existing business, on the war in Ukraine, we will see a low triple digit million loss in premiums,” CFO Christoph Jurecka (pictured) said during a Q&A session at the 2022 AGM. Lost premiums follow on both sanctions “and restrictive underwriting measures we have decided on".

Munich Re continues to claim “low reinsurance exposure” to Russia, Ukraine and Belarus, but officials admit to coverage of unspecified scope in specialty lines.

“In many cases, it cannot be determined to what extent cover and coverage applies,” CEO Joachim Wenning said. “I cannot guarantee that no negative consequences will emerge in the future.”

Exposures are being scoured in aviation, transport, credit insurance and political risks.

Aviation covers are entangled in the Russian appropriation of aircraft and could bring both primary and reinsurance claims, but the precise outlook remains "unclear," Jurecka said.

Elsewhere, credit insurance remains hazy given mandatory waiting periods on claims. Business interruption claims on extended supply-chain problems are unlikely as damages are required for claims; non-availability of materials is no trigger, he claimed.

“Developments are hardly foreseeable,” Jurecka said when asked about worst-case scenarios. “But what we do have is enough capital reserves to buffer any potential negative effects.”

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