Man-made losses weigh on Munich Re profit in second quarter

German reinsurance giant Munich Re yesterday said it was on track to meet its full-year targets even as costly man-made disasters dragged down earnings in the second quarter, reports AFP from Frankfurt Am Main.

The Bavaria-based group, whose main business is helping insurers hedge themselves against possible losses, reported net profit of 724 million euros ($840 million) between April and June, down from 729 million a year earlier.

Gross premiums written—the equivalent of revenue at an insurance company—slipped 5.2 percent to 11.2 billion euros, which the group partly blamed on negative currency effects and the termination of some large reinsurance contracts.

Munich Re said it paid out 501 million euros for major man-made catastrophes—up from 187 million euros over the same period a year earlier.

The single most expensive claim “by far” stemmed from structural damage to a hydroelectric power station in Colombia.

The group also paid out 104 million euros for claims related to natural disasters, including severe thunderstorms in the United States in June.

 

Man-made losses weigh on Munich Re profit in second quarter

German reinsurance giant Munich Re yesterday said it was on track to meet its full-year targets even as costly man-made disasters dragged down earnings in the second quarter, reports AFP from Frankfurt Am Main. The Bavaria-based group, whose main business is helping insurers hedge themselves against possible losses, reported net profit of 724 million euros ($840 million) between April and June, down from 729 million a year earlier. Gross premiums writtenthe equivalent of revenue at an insurance companyslipped 5.2 percent to 11.2 billion euros, which the group partly blamed on negative currency effects and the termination of some large reinsurance contracts. Munich Re said it paid out 501 million euros for major man-made catastrophesup from 187 million euros over the same period a year earlier. The single most expensive claim by far stemmed from structural damage to a hydroelectric power station in Colombia. The group also paid out 104 million euros for claims related to natural disasters, including severe thunderstorms in the United States in June.