Strong growth in life and health insurance, a lower property-casualty combined ratio of 98% and continued writedowns are the major features of Munich Re’s first-quarter results announced yesterday.

The company blames weak capital markets for writedowns of $1.5 billion and an “improved” net loss of $428 million. Reinsurance contributed $52.1 million to the group result.

Munich Re’s pre-tax operating profit was $221 million, a big improvement on its $2.8 billion loss in the last quarter of 2002. “Our underwriting policy in reinsurance succeeded in bringing the combined ratio down below the 100% mark for the first time in a long while,” the company said.

Chairman Hans-Jürgen Schinzler said plummeting capital markets led to writedowns and losses on the disposal of investments. “Despite this enormous burden, the otherwise pleasing performance of the group’s business meant that the net result was a deficit (after tax) of only $428 million.”

Looking ahead, he said Munich Re is “making good progress, despite the uncertainties regarding capital market trends. Provided we are spared exceptional loss events, the advances we have made will have a noticeable impact on our overall result for 2003.”