After facing large losses this year in the wake of the coronavirus crisis, Munich Re will no longer insure against events cancelled due to pandemics.
According to a Reuters report citing a statement from board member Torsten Jeworrek, Munich Re would remain in the business but the tweak in its strategy was a result of the pandemic.
The reinsurer will also adjust prices for event cancellation coverage, said Mr Jeworrek who oversees the reinsurance segment
The cancellation and postponement of sports events like the Olympics in Tokyo as well as concerts have been a major burden for Munich Re. The reinsurer expects a total of EUR4bn ($4.85bn) in coronavirus-related losses.
The disclosure came as it announced new financial targets. Munich Re aims to increase its return on equity by 12% to 14% by 2025 – which is up from a return of 9.2% in 2019. The reinsurer also said it expects to return to pre-pandemic annual profit levels of EUR2.8bn in 2021.