Munich Re, Hannover Re Profits Hit by LA Wildfires

Munich Re and Hannover Re, two of Germany's largest reinsurers, reported sharp declines in first-quarter 2025 profits due to heavy losses from the January Los Angeles wildfires. Munich Re's profit fell 48% to €1.09 billion, while Hannover Re's dropped 14% to €480 million, with Munich Re's wildfire claims totaling €1.1 billion—slightly below earlier estimates. The disaster is now considered one of the most expensive wildfires in U.S. history. Other major insurers, including Chubb, Travelers, AIG, and Allstate, also faced significant losses primarily from these fires. Munich Re's investment results were further pressured by higher European interest rates, yet both reinsurers reaffirmed their full-year profit forecasts. Despite ongoing market challenges, Munich Re maintained its annual net profit target of €6 billion for 2025.