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Munich Re posts 12% drop in fourth-quarter profit as weak dollar weighs

Published by Global Banking & Finance Review®

Posted on February 26, 2026

1 min read

Last updated: February 26, 2026

Munich Re posts 12% drop in fourth-quarter profit as weak dollar weighs - Finance news and analysis from Global Banking & Finance Review

Tags:insurance foreign exchange

Quick Summary

Munich Re reported a 12% drop in Q4 net profit to €945m as a weaker U.S. dollar weighed on results. Full-year profit rose to €6.121bn, beating targets, while January renewals fell 7.8% amid disciplined underwriting.

Munich Re Q4 Profit Falls 12% as Weak Dollar Weighs on Results

Munich Re Q4 Earnings and Currency Impact

FRANKFURT, Feb 26 (Reuters) - The German reinsurer Munich Re on Thursday posted a steeper-than-expected 12% fall in net profit in the fourth quarter on the back of negative currency effects due to a weaker U.S. dollar.

Quarterly Net Profit vs Expectations

Net profit in the quarter of 945 million euros ($1.12 billion) compares with 1.068 billion euros a year ago. Analysts had expected net profit of 1.030 billion euros.

Full-Year Profit Beats Target

For the full year, Munich Re posted net profit of 6.121 billion euros, up from 5.690 billion euros a year earlier, ahead of a target of 6 billion euros.

Renewals and Underwriting Discipline

The world's largest reinsurer said that renewals of business at the start of the year dropped 7.8% as the company "deliberately opted to not renew or write business that did not meet expectations with respect to return requirements or terms and conditions".

Exchange Rate Reference

($1 = 0.8464 euros)

(Reporting by Tom Sims and Alexander HuebnerEditing by Ludwig Burger)

Key Takeaways

•Q4 net profit was €945m, down 12% year over year.
•Result missed analyst expectations of €1.03bn.
•Full-year net profit rose to €6.121bn, topping a €6bn target.
•A weaker U.S. dollar drove negative currency effects on earnings.
•January renewals fell 7.8% as unprofitable business was not renewed.

Frequently Asked Questions about Munich Re posts 12% drop in fourth-quarter profit as weak dollar weighs

1What is the main topic?

Munich Re’s fourth-quarter earnings fell 12% due to negative currency effects from a weaker U.S. dollar, while full-year profit exceeded guidance and renewals declined.

2Why did Munich Re’s profit decline in Q4?

The company cited negative currency effects from a weaker U.S. dollar, which reduced reported earnings despite otherwise disciplined underwriting.

3How did full-year results compare to targets?

Full-year net profit was €6.121bn, ahead of the €6bn target, reflecting overall strong performance despite Q4 currency headwinds and softer renewals.

Munich Re Q4 Earnings and Currency Impact

Quarterly Net Profit vs Expectations

Net profit in the quarter of 945 million euros ($1.12 billion) compares with 1.068 billion euros a year ago. Analysts had expected net profit of 1.030 billion euros.

Full-Year Profit Beats Target

For the full year, Munich Re posted net profit of 6.121 billion euros, up from 5.690 billion euros a year earlier, ahead of a target of 6 billion euros.

Renewals and Underwriting Discipline

Exchange Rate Reference

($1 = 0.8464 euros)

(Reporting by Tom Sims and Alexander HuebnerEditing by Ludwig Burger)

Key Takeaways

•Q4 net profit was €945m, down 12% year over year.

•Result missed analyst expectations of €1.03bn.

•Full-year net profit rose to €6.121bn, topping a €6bn target.

•A weaker U.S. dollar drove negative currency effects on earnings.

•January renewals fell 7.8% as unprofitable business was not renewed.

Frequently Asked Questions

1What is the main topic?

Munich Re’s fourth-quarter earnings fell 12% due to negative currency effects from a weaker U.S. dollar, while full-year profit exceeded guidance and renewals declined.

2Why did Munich Re’s profit decline in Q4?

The company cited negative currency effects from a weaker U.S. dollar, which reduced reported earnings despite otherwise disciplined underwriting.

3How did full-year results compare to targets?

Full-year net profit was €6.121bn, ahead of the €6bn target, reflecting overall strong performance despite Q4 currency headwinds and softer renewals.