Munich Re reports higher first-quarter profit
(Reuters) - German reinsurer Munich Re Group announced higher profits for the first quarter and confirmed its outlook for the full year on Tuesday, despite a challenging environment.
The company said its first-quarter profit grew to €608 million ($642 million), up from last year's €589 million, in a result it described as "resilient" in a statement.
Munich Re's operating result reached €780 million, down slightly compared to €798 million a year ago.
However the company's gross premiums increased substantially by 15.7% to €16.83 billion from last year's €14.55 billion.
The annualized return on equity for the quarter was 9.8%, compared to 10.4% a year ago.
Despite the uncertainties of a challenging environment, Munich Re maintained its annual profit guidance of €3.3 billion based on a quarterly profit of more than €600 million, the reinsurer said.
Gross premium is now expected to increase to €64 billion in 2022, compared to a previous estimate of around €61 billion.
In a statement accompanying the results, Munich Re chief financial officer Christoph Jurecka said the company was also helping to provide humanitarian aid for the people of Ukraine and "fully supports" the sanctions against Russia.
"The financial consequences of the war and the sanctions severely impacted our result in the first quarter: We made write-downs for impairment losses on Russian and Ukrainian bonds alike and recorded the first claims," he said.
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