Munich Re Beat 2Q Expectations Despite Hit to Investment Result
09 August 2022 - 4:37PM
Dow Jones News
By Ed Frankl
Muenchener Rueckversicherungs-Gesellschaft AG said Tuesday that
profit and premiums in the second quarter beat expectations, though
losses increased and the cooling economy and higher rates hit its
return on investment.
The German reinsurer reported net profit of 768 million euros
($783 million) in the three months to the end of June, down from
EUR1.11 billion a year earlier.
Gross premiums written came to EUR15.85 billion, up from
EUR14.64 billion in the same period last year, Munich Re said.
That compared with expectations of EUR719 million for net profit
and EUR15.8 billion for gross written premiums, according to
analysts' estimates provided by the company.
Reinsurance losses increased in the second quarter on year, with
major losses over EUR10 million climbing to EUR575 million from
EUR432 million a year earlier.
The company took EUR90 million in losses in the quarter from the
impact of Russia's invasion of Ukraine, and around EUR200 million
for it in the first half, it said.
Natural-catastrophe losses grew nearly 25%, with the costliest
natural disaster for Munich Re the drought in South America, with
losses at around EUR130 million, it said.
Munich Re cut its guidance for its investment result to a return
of over 2.0%, from 2.5% previously, hit by falling share prices and
higher interest rates, but kept its other targets, including a net
profit of EUR3.3 billion for 2022.
However, July renewals showed premium growth of 6%, though the
company said it is being cautious in calculating future loss
expectations due to higher inflation.
Write to Ed Frankl at edward.frankl@dowjones.com
(END) Dow Jones Newswires
August 09, 2022 02:22 ET (06:22 GMT)
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