By Mauro Orru 
 

Munich Re AG posted higher profit for the fourth quarter and set out its forecasts for the year after January renewals showed premium growth and rising prices.

The German reinsurer said Wednesday that net profit jumped to 868 million euros ($983 million) from EUR208 million in the fourth quarter of 2020.

Gross premiums written increased to EUR14.89 billion from EUR13.63 billion.

Its operating result rose to EUR962 million from EUR481 million.

"Propelled by this momentum, we will resolutely tap into the favorable market environment as we increase our profit to EUR3.3 billion in 2022," Joachim Wenning, chairman of the management board, said.

Its profit forecast includes pretax losses of around EUR300 million related to coronavirus in the life-and-health reinsurance segment.

Group premium income should reach about EUR61 billion in 2022, with a return on investment above 2.5% despite persistently low interest rates, it said.

Munich Re's results come a day after the company said it would start a share buyback of up to EUR1 billion and proposed a dividend of EUR11 a share for 2021.

 

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

 

(END) Dow Jones Newswires

February 23, 2022 02:04 ET (07:04 GMT)

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