Munich Re has flagged a “satisfactory” result for the first quarter of 2009, saying its consistent risk management approach is paying off amid the global financial crisis.

First-quarter results will be released on Thursday, but Chairman Nikolaus von Bomhard told the company’s AGM in Munich the group has been practising what it preaches in terms of risk management.

The upbeat comments on Munich Re’s performance since January follow a 76% fourth-quarter net profit slide to €503 million ($928 million), which was attributed to natural catastrophe costs, loss reserve strengthening and writedowns on fixed interest securities. It helped drag full-year net profit for 2008 down by almost half to €1.5 billion ($2.7 billion).

“Although the picture is not yet complete, a satisfactory result is emerging,” Dr von Bomhard said. “On the one hand, we had to absorb further strains on our investment result in the difficult capital markets. On the other hand, the performance of our underwriting business was pleasing, with manageable major losses from natural catastrophes.”

He noted a definite hardening in reinsurance terms and conditions in specific segments – especially covers for natural catastrophes – although they have not done so on a broad front.