By Ed Frankl 
 

Muenchener Rueckversicherungs-Gesellschaft AG said Tuesday that first-quarter profit rose slightly on lower-than-average major losses in its property-casualty segment, though it took an over 100 million euro ($105.8 million) hit from the effects of the war in Ukraine.

The German reinsurer posted net profit of EUR608 million in the three months to the end of March, up from EUR589 million a year earlier.

Munich Re said major losses in its property-casualty reinsurance segment were EUR667 million, down from EUR892 million last year, with the largest losses coming from heavy rainfall in Australia and winter storms in Europe.

The company said it posted expenditure related to the war in Ukraine of slightly more than EUR100 million in some specialty lines.

"We made write-downs for impairment losses on Russian and Ukrainian bonds alike and recorded the first claims," Chief Financial Officer Christoph Jurecka said.

The company's life-and-health business recorded a loss of EUR78 million, mainly due to Covid-19 losses from the Omicron wave in the U.S., Munich Re said.

However, Munich Re kept its full-year profit guidance of EUR3.3 billion unchanged, though it raised its gross premium outlook by EUR3 billion to EUR64 billion, despite flagging continuing uncertainty regarding the financial impact of the war.

 

Write to Ed Frankl at edward.frankl@dowjones.com

 

(END) Dow Jones Newswires

May 10, 2022 02:15 ET (06:15 GMT)

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