Amid the gloom and doom comes a stand-out result from Munich Re, which ended the first half with a net income of $7.5 billion, up on the $2.3 billion recorded in the first half of 2001. Premium income increased by 20% to $36.3 billion.

The result came in the face of a $3.6 billion investment in its US subsidiary American Re and a further addition to its own reserves of $907 million to gets its World Trade Centre-related reserves in order. But it also profited by $8.3 billion from its complex divestment of its share in Allianz.

Some analysts are reportedly recalculating the result and dropping it to $3.7 billion, and are forecasting a tougher time for Munich in the second half. The impact of higher premiums and cancelled bad business will be crucial.