Munich Re expects Coronavirus-Related claims in excess of $1 Billion during 2020
Finance chief Christoph Jurecka said, however, he would be “very surprised” if the company failed to post a profit in 2020.“Uncertainty is extremely high,” he told journalists by telephone. “No one knows how this pandemic will develop.”
Munich Re said on Thursday it expected to receive claims for canceled or postponed events because of the coronavirus crisis in excess of 1 billion euros ($1.08 billion) this year after it posted a 65% drop in first-quarter profit.
The German reinsurer, which joins a raft of insurers warning of threats to their business, had already said it would not meet a profit target this year.
In a statement accompanying its quarterly earnings, Munich Re said it was retracting two other profit targets and “faces a significantly higher risk of all its target figures not being attained.”
Finance chief Christoph Jurecka said, however, he would be “very surprised” if the company failed to post a profit in 2020.
“Uncertainty is extremely high,” he told journalists by telephone. “No one knows how this pandemic will develop.”
Shares traded 1% higher in morning trading in Frankfurt.
Profit in the first quarter fell to 221 million euros ($238.66 million), down from 633 million euros [US$684.4 million] a year earlier.
Event cancellations and postponements made up the bulk of 800 million euros [US$865 million] in coronavirus-related losses in the quarter, it said. Claims for canceled and postponed events may exceed 1 billion euros this year, Jurecka said.
The company also expects it will begin to see claims in its life insurance division resulting from virus-related deaths in the United States in the second quarter, he said.