`We deliberately opt not to take on business where prices would not be risk-commensurate, while remaining a reliable long-term partner to our clients, even after the largest of loss events.”Christoph Jurecka,Chair of the Board of Management.
German reinsurer Munich Re on Friday posted a 6% rise in net profit in the second quarter, defying expectations for a drop and lifted by low major loss claims.
-Net profit in the quarter of €2.211 billion ($2.55 billion) compares with €2.085 billion a year ago.
-Analysts had expected net profit of €1.786 billion.
-Major loss costs were “very low” at 4.9% of insurance revenue, compared with an expected 18%, Munich Re said.
-It said that it was sticking to its full-year profit target of €6.3 billion.
It trimmed its insurance revenue forecast to €38 billion from €40 billion
“With an excellent half-year result of €3.9bn, Munich Re is well on track to achieve its annual target of €6.3bn.Thanks to our strong balance sheet, higher investment income and rising profit contributions from our less volatile business segments, we are able to manage the market cycle in property-casualty reinsurance from a position of strength,” said Christoph Jurecka,Chair of the Board of Management.
“We deliberately opt not to take on business where prices would not be risk-commensurate, while remaining a reliable long-term partner to our clients, even after the largest of loss events. These strengths underline our ambition to achieve a return on equity of over 18% and an average annual increase in earnings per share of more than 8% by 2030,”said Jurecka.
Looking ahead to the upcoming round of renewals in January, Munich Re expects a market environment in which the sustained favourable price levels as well as improved terms and conditions can be largely upheld despite the high level of competition.
As a broadly diversified insurance group, and owing to the steady expansion of less cyclical and less volatile business segments in recent years, Munich Re is also strategically very well positioned for softer market phases in property-casualty reinsurancesaid Munich Re.