Catastrophes hasten fall in Munich Re profit
The Victorian bushfires are among a clutch of catastrophes to contribute to a 19% fall in Munich Re’s first-half net profit.
The global reinsurer earned €1.1 billion ($1.9 billion) compared to €1.37 billion ($2.33 billion) in the same period last year, despite a 14% improvement in second-quarter profit of €691 million ($1.18 billion).
A separate Munich Re natural catastrophe report valued insured losses from the Victorian bushfires at $US770 million ($913 million).
The bushfires were the fifth most costly natural disaster to occur in the first half which featured above-average total losses estimated at $US11 billion ($18.8 billion).
Munich Re’s own exposure has resulted in a 36% fall in reinsurance profit of €1.3 billion ($2.2 billion). Its investment earnings mitigated some of the damage, increasing 9% during the half to €3.55 billion ($6.1 billion).
Its insurance operations also improved in turning around a €9 million ($15 million) loss in the first half of last year to report a profit of €330 million ($563 million).
CEO Nikolaus von Bomhard says the financial downturn had only a limited effect on the reinsurer, but the company’s full-year return on capital target of 15% was “certainly ambitious” in light of the conditions.
The global reinsurer earned €1.1 billion ($1.9 billion) compared to €1.37 billion ($2.33 billion) in the same period last year, despite a 14% improvement in second-quarter profit of €691 million ($1.18 billion).
A separate Munich Re natural catastrophe report valued insured losses from the Victorian bushfires at $US770 million ($913 million).
The bushfires were the fifth most costly natural disaster to occur in the first half which featured above-average total losses estimated at $US11 billion ($18.8 billion).
Munich Re’s own exposure has resulted in a 36% fall in reinsurance profit of €1.3 billion ($2.2 billion). Its investment earnings mitigated some of the damage, increasing 9% during the half to €3.55 billion ($6.1 billion).
Its insurance operations also improved in turning around a €9 million ($15 million) loss in the first half of last year to report a profit of €330 million ($563 million).
CEO Nikolaus von Bomhard says the financial downturn had only a limited effect on the reinsurer, but the company’s full-year return on capital target of 15% was “certainly ambitious” in light of the conditions.