Munich Re, the world’s second biggest reinsurer, raised fresh concerns about insurers’ ability to weather the global financial crisis, with a surprise warning that profits would be sharply lower.

Shares in Munich Re fell 7.3 per cent to €107.88 after it said profits this year would be below its previously forecast range of €3bn-€3.4bn ($4.7bn-$5.3bn) but still “well above” €2bn.