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Munich Re reiterated its financial targets for the year, after posting a 28 per cent jump in first quarter earnings.
In the three months to the end of March, Germany’s biggest reinsurer said that its net profit came in at €557m, up from €436m in the same period a year earlier.
The results fell short of analysts’ forecasts of €584m, and shares in the company fell 2.5 per cent in early trading. However, Jörg Schneider, chief financial officer, said that he was “very pleased” with the result – which was achieved despite an increase in the incidence of major losses – and that Munich Re was “on track” to meet its annual net income target of €2bn to €2.4bn.
“We welcome the turnaround in interest rates in the USA, and hope that the ECB will also return to sustainable monetary policy,” he said, adding that pressure on prices in reinsurance had “eased off considerably”.
Munich Re’s core reinsurance division posted a net profit of €466m, up 4 per cent from €449m in the same period a year earlier. Meanwhile, Munich Re’s primary insurance business, Ergo, which is in the throes of a restructuring programme, posted a net profit of €91m, up from a €12m net loss last year.