Munich Re slashes profit prediction
Munich Re is blaming “turmoil on capital markets” for a drastic lowering of its second-quarter profit forecast. And the giant German reinsurer now expects its profit for this year to be below the previously expected €3-3.4 billion ($4.9-5.6 billion), “but still well above €2 billion ($3.3 billion)”.
CFO Jorg Schneider says the capital markets turmoil has led to “an appreciable reduction” in the group’s first-half result.
Quoting “very provisional key figures”, he says Munich Re’s consolidated profit for the second quarter will total around €600 million ($988 million), compared with €1.15 billion ($1.9 billion) for the corresponding period last year.
There are plenty of factors getting in the way of a better result. Mr Schneider says share prices have fallen substantially since the beginning of the year, with European sharemarkets showing falls of up to 24%.
“Fixed-interest securities and currency parities have also been subject to exceptionally high volatility,” he said.
CFO Jorg Schneider says the capital markets turmoil has led to “an appreciable reduction” in the group’s first-half result.
Quoting “very provisional key figures”, he says Munich Re’s consolidated profit for the second quarter will total around €600 million ($988 million), compared with €1.15 billion ($1.9 billion) for the corresponding period last year.
There are plenty of factors getting in the way of a better result. Mr Schneider says share prices have fallen substantially since the beginning of the year, with European sharemarkets showing falls of up to 24%.
“Fixed-interest securities and currency parities have also been subject to exceptionally high volatility,” he said.