Munich Re Q2 profit slumps

(Reuters) — German reinsurance group Munich Re said Tuesday that losses on shares and other securities caused profit in the second quarter to slump to €768 million ($783 million) from €1.11 billion in the year-earlier period.

Earnings per share were €5.50. compared with €7.89 in last year’s second quarter. The operating result was €763 million, down from €1.55 billion.

For 2022, Munich Re now expects its investment results to represent a return of more than 2%, revised downward from a previous forecast of more than 2.5%.

The company noted that the other targets previously communicated for 2022 remain unchanged. Munich Re is still aiming for a consolidated result of €3.3 billion for the full year.

However, in the view of the board of management, the targets are subject to increased uncertainty going forward due to fragile economic conditions, fluctuating capital markets and the unclear path of the coronavirus pandemic.

The financial consequences of Russia's war in Ukraine are also still up in the air, it added. In the first half of the year, Munich Re set aside around €200 million for losses resulting from the war.