Page 16 - Insurance Times June 2019

Munich Re reports 10.3% Swiss Re 1Q net income suggests excellent L&H Re per-
growth with quarterly formance
Swiss Re has reported net income of USD 429 million for the first quarter of
profit of €633m
2019, along with excellent performance delivered
Munich Re has generated a profit of
by L&H Re and a very strong investment result.
€633m (827m) in the first quarter of
Claims from large natural catastrophes and man-
2019 suggesting a good start. Higher
made losses included the North Queensland floods
basic losses and greater expenditure
in Australia, Cyclone Idai in Mozambique, the
for claims from previous years pre-
Ethiopian Airlines crash and the subsequent
vented a repeat of the extraordinary
grounding of the Boeing 737 MAX fleet. In addi-
result in the same quarter last year,
tion, a significant amount of late claims from prior-year events, mainly from
which was practically free of major
Typhoon Jebi, also adversely impacted the result for the quarter.
losses.
Swiss Re's investment portfolio generated a very strong ROI of 4.5%, driven by
The first-quarter operating result fell
significant market value gains from equity securities. This compares to an ROI
year on year to €875m (1,283m).
of 2.2% for the first quarter of 2018. The fixed income running yield was 2.9%.
The other non-operating result re-
Net premiums earned for the first quarter of 2019 increased by 5.5% to USD
mained nearly constant at €122m (-
8.8 billion year-on-year, reflecting growth in all Business Units. At constant ex-
125m); the currency translation re-
change rates, the increase was 9.4%.
sult amounted to €58m (-68m).
Swiss Re's Group Chief Financial Officer John Dacey said, "We are pleased with
Taxes on income totalled €122m
our premium growth and the very strong investment result in the first quarter
(212m). At €28,990m, equity was up
of 2019. We continue to have an industry-leading capital position, providing us
on the start of the year (€26,500m)
with high financial flexibility to support profitable growth. We will start to re-
- primarily due to value increases in
turn excess capital to our shareholders through the first tranche of our
the share portfolio and fixed-interest
share buy-back programme - a clear commitment to our capital management
securities. Compared with the same
priorities."
quarter last year, gross premiums
written rose by 1.9% to €13,375m
(13,126m). New app to ease travel insurance woes
Hey Mondo, spanish travel insurance broker, has launched a new mobile phone
The annualised return on risk-ad-
justed capital (RORAC) in Q1 application that includes assistance services
amounted to 9.9%, and the overall such as online management of incidents
return on equity (RoE) totalled 9.1%. and a 24/7 medical chat line that can be ac-
cessed free via public Wi-Fi connections.
"Munich Re has begun 2019 with a
good first quarter. Munich Re contin- Launched this month, the company claims
ues to grow organically in its core it is the first of its kind to be available on
business of property-casualty reinsur- the national market and represents 'a mile-
ance. The April renewals were the stone on the way to attaining leadership in
sixth consecutive round of renewals digital transformation in the travel insurance sector'.
in which we are able to expand our
Ricard Domenech, the founder of Hey Mondo's, said the app meets the goal of
business robustly in some areas.
seeking 'constant improvement in the user's experience, not only at the time
Prices for reinsurance coverage have
of purchase but also when the moment of truth arrives, when it is time to make
continued to rise following the high
use of the insurance' and that it will prove to be a 'disruptive innovation in the
losses in previous years. In primary
travel insurance sector'.
insurance, the implementation of the
The app is designed to allow users to make internet calls to their insurers free
ERGO Strategy Programme is making
good progress," said Christoph via public Wi-Fi connections in the case of an incident. Hey Mondo said, "This
Jurecka, Chief Financial Officer. overcame a common problem for many tourists who travel without their usual
phone, or even if they do maintain their regular line often have to face up to
having to pay expensive bills before they can make an emergency call."

16 The Insurance Times, June 2019