Milli Re 2025 Annual Report

Following the last couple of years with elevated natural catastrophe activity, global economic losses from natural catastrophes totaled USD 296 billion in 2025, remaining well below the decennial average of USD 394 billion. Decreasing by 11% on an annual basis, global insured losses declined to USD 129 billion, marking the lowest level of industry losses since 2019. While the number of events with insured losses exceeding billion-dollar level reached 27 in 2025, all but two were weather-related disasters such as severe convective storms, floods and wildfires. This trend highlighted once again the heightened risks posed by climate change, with both the frequency and severity of extreme weather events continuing to rise. In 2025, US losses continued to dominate the statistics, accounting for approximately 50% of total economic losses and 77% of insured losses. While the 2025 Atlantic hurricane season was relatively benign, 2025 also marked the first year since 2015 in which no hurricanes made landfall on the U.S. mainland. Hurricane Melissa, which made landfall in Jamaica as a Category 5 storm at the end of October, stood out as the only major event of the 2025 Atlantic hurricane season. With maximum sustained wind speeds of 295 km/h, Melissa surpassed Hurricane Gilbert of 1988 and was recorded as the strongest hurricane ever to hit the island. Causing widespread destruction also in Cuba and Haiti; the total economic cost of Melissa is anticipated to reach USD 10 billion. As the insurance penetration in the region remains low, only USD 2.5 billion of this amount is expected to be recoverable from the insurance industry. On the other hand, US severe convective storms continued to be a key concern for the insurance industry in 2025. Total economic losses caused by a series of events reached USD 68 billion, of which approximately USD 52 billion was insured. Based on both insured and economic loss figures, 2025 was recorded as the third costliest year in U.S history for severe convective storm losses, ranking after 2023 and 2024. Although the total number of billion-dollar loss events reached 13, the outbreak that struck the Midwestern and Southeastern US between March 13th and 17th, affecting particularly the states of Missouri, Oklahoma, Mississippi and Alabama, stood out as the costliest severe convective storm of the year. Causing extensive damage across multiple states with torrential rainfall, thunderstorms and tornadoes; the total economic cost of the event is estimated at USD 11 billion, while USD 8.4 billion of this amount is expected to be covered by the insurance industry. Global insured catastrophe losses were annually down by 11% to USD 129 billion. Global Reinsurance Market and Milli Re in 2025 GENERAL INFORMATION FINANCIAL RIGHTS PROVIDED TO THE MEMBERS OF THE GOVERNING BODY AND SENIOR EXECUTIVES RISKS AND ASSESSMENT OF THE GOVERNING BODY ACTIVITIES AND MAJOR DEVELOPMENTS RELATED TO ACTIVITIES RESEARCH & DEVELOPMENT ACTIVITIES FINANCIAL STATUS FINANCIAL INFORMATION 67