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Munich Re, Hannover Re each report big losses from LA wildfires - MarketWatch

1. Munich Re's Q1 profit fell 48% to €1.09 billion. 2. Claims from LA wildfires reached around €800 million for Munich Re. 3. Hannover Re reported a 14% drop in profit, totaling €480 million. 4. Total wildfires claims estimated at €1.1 billion by Munich Re. 5. Both reinsurers reiterated financial guidance despite losses.

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FAQ

Why Bearish?

The reported losses from natural disasters signal financial strain, negatively affecting investor sentiment, as seen during previous crisis periods (e.g., 2017 hurricane season).

How important is it?

The financial impact of the wildfires directly affects Munich Re's profitability, which is critical for MUV2's future performance.

Why Short Term?

The immediate financial repercussions of the wildfires will likely affect Q1 and Q2 stock performance, similar to past disaster-related losses.

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