(Alliance News) - Munich Re AG on Tuesday reported a higher net profit in the first quarter but reported "slightly lower prices" in April property-casualty reinsurance renewals.

The Munich, Germany-based reinsurance company said it generated a net profit of EUR1.71 billion in the first quarter, up 57% from EUR1.09 billion a year prior.

The total technical result rose 30% to EUR2.68 billion from EUR2.05 billion. Insurance revenue from insurance contracts fell 5.0% to EUR15.02 billion from EUR15.81 billion, mostly due to adverse currency translation effects.

The annualised return on equity for the first quarter was 19.7%, compared to 13.3% a year prior.

Munich Re noted that major-loss expenditure in the property-casualty reinsurance segment dropped 87% to EUR130 million from EUR1.01 billion, after being severely impacted by the Los Angeles wildfires last year.

The property-casualty reinsurance segment posted a net profit of EUR841 million, more than doubled from EUR343 million.

In the reinsurance renewals at the start of the April, Munich Re said the volume of business dropped 19% to ERU2.0 billion.

"Munich Re systematically opted to not renew or write business that did not meet expectations with respect to the required prices or terms and conditions. Falling prices also led to a reduction in volume," the firm said.

There was a 3.1% drop in prices, but the company said the "good price level" of its portfolio was maintained overall.

"Looking ahead to the upcoming round of renewals in July, Munich Re expects a market environment in which the sustained favourable price levels as well as improved terms and conditions can be largely upheld despite the current market pressure," it said.

Looking ahead, Munich Re left its annual guidance unchanged, as it aims for a net profit of EUR6.3 billion for 2026 from EUR6.12 billion in 2025.

"All business fields and segments have reported encouraging development, in turn contributing to the group's strong net result," said Chief Financial Officer Andrew Buchanan.

"Slightly lower prices in the April property-casualty reinsurance renewals do not obscure the positive overall picture: Prices remain favourable and the quality of our portfolio is high."

Shares in Munich Re were down 3.9% at EUR480.10 on Tuesday morning in Frankfurt.

By Michael Hennessey, Alliance News reporter

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