Munich Re first-half profits down on German flood losses
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Munich Reinsurance Co. posted a profit of €543 million ($721.2 million) for the second quarter of 2013, down from €812 million ($1.03 billion) for the same period last year, after claims from floods in Germany and surrounding countries as well as other above-average losses.
Profit for the first half of 2013 was €1.52 billion ($2.02 billion), down slightly from €1.59 billion ($2.01 billion) at the end of the first half of 2012.
In a statement Tuesday, Munich Re CEO Nikolaus von Bomhard said the result was satisfactory given the extent of major losses and that the company remains on track to meet its profit target of close to €3 billion ($3.98 billion) for the year.
Munich Re posted gross written premiums of €26.1 billion ($34.66 billion) for the first half of 2013, compared with €25.8 billion ($32.67 billion) for the first half of 2012.
The Munich-based reinsurer posted an investment result of €3.6 billion ($4.78 billion) for the first half of 2013, compared with €4.1 billion ($5.19 billion)for the same period last year.
Munich Re said that its primary insurance operations posted a net loss of about €50 million ($66.4 million) from the recent floods in Germany and other areas of central Europe. The company's reinsurance operations posted a loss from the floods of about €180 million ($239.1 million), it said.
For reinsurance business, Munich Re posted an increase in gross written premiums in the first half of 2013 to €5.6 billion ($7.44 billion) from €5.3 billion ($6.71 billion) in the first half of last year.
The company's reinsurance arm posted a combined ratio of 92.4% for the first half of 2013 compared with 95.7% for the same period in 2012.
Overall for reinsurance business rates fell by about 0.9% compared with the first half of 2012, the reinsurer said.
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