Munich Re’s Q1 net profit beats expectations

(Reuters) — German reinsurer Munich Re on Tuesday posted a greater than expected rise in first-quarter profit and said it is more likely to surpass its full-year target.

In an unscheduled announcement, Munich Re said net profit in the quarter was around €2.1 billion ($2.24 billion), compared with €1.271 billion a year earlier and analyst expectations of €1.476.

The world's largest reinsurer said it still foresees net profit of € 5 billion this year, but “surpassing this target has become more likely” as all business segments performed better than expected in the first quarter.

Munich Re’s combined ratio — a measure of profitability for its large property/casualty division — fell to around 75% in the quarter, from 86.5% in the year-earlier period due to below-average major claims. Readings below 100% indicate profitability.

The company said it will post full results as scheduled on May 8.