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High cat loss 'burden' fails to dent Munich Re earnings

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Munich Re says natural catastrophe losses “burdened” its third quarter results but maintains the business is on track to achieve its €2.8 billion ($4.3 billion) profit target for the year.

Preliminary figures show the reinsurer made a profit of about €400 million ($618 million) in the July-September period, the reinsurer said last week, ahead of the release of its third quarter results next month.

The third quarter preliminary results mean Munich Re has achieved a profit of €2.1 billion ($3.2 billion) in the nine months to September.

Windstorm Bern, which led to flooding and flash floods in Germany and neighbouring countries, cost its property and casualty business around €600 million ($928 million), while Hurricane Ida in the US produced losses of €1.2 billion ($1.9 billion)

The property and casualty reinsurance did not suffer any “noteworthy” COVID-19 losses in the third quarter, the reinsurer said.

Munich Re’s profit last year fell 55.3% to €1.2 billion as the pandemic fallout impacted earnings.