"From today's perspective, Munich Re does not expect the consequences of the coronavirus to have any overall material effect on the annual result," the German reinsurer said in its annual report published Wednesday. "However, the more this virus spreads, the greater the impact could be on Munich Re."
In the unlikely scenario of the pandemic becoming a one-in-200-year event, the company said it might face up to 1.4 billion euros ($1.55 billion) in life and health insurance claims. This would be similar in scope to the effects of a medium-sized natural disaster in property and casualty reinsurance.
Such an extreme scenario would also lead to losses in the medium-to-high triple-digit-million euro range in property-casualty reinsurance, mostly related to the insurance of major events.
"Munich Re does not currently anticipate a global recession in the financial markets," it said.