Munich Re has reaffirmed its full-year guidance after second quarter revenue came in ahead of forecasts.
The world's largest reinsurer on Wednesday reported €728m in net income for the three months ending June, 0.6 per cent less than in the same period in 2017 but slightly ahead of analysts’ forecasts of €711m, according to S&P Global Market Intelligence data. In the first six months of the year profits rose by a fifth to €1.55bn.
“We are most certainly on track to reach our profit target of €2.1–2.5bn for the year as a whole,” chief executive Joachim Wenning said in a statement. The first half number equals 67 per cent of its full-year profit range's mid point.
In the group's reinsurance business, gross premiums written declined 9.5 per cent in the second quarter, driven by a 32.8 per cent drop in reinsurance life and health premiums.
While premiums in property-casualty reinsurance rose 9.5 per cent, the increase was too small to compensate for the poor performance in life and health reinsurance. The division's operating profit fell by 21.7 per cent.
The group's primary insurance business Ergo, which is in the midst of a deep restructuring programme, posted a 2.8 per cent rise in gross premia written and a 13.8 per cent increase in operation profit.
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