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Major reinsurer optimistic over 2016 earnings after Q3 profit leap

Major reinsurer optimistic over 2016 earnings after Q3 profit leap

Major reinsurer optimistic over 2016 earnings after Q3 profit leap Munich Re has stated that it’s “well on track” to reach its full-year earning target as it posted a €684 million profit in the third quarter, and a consolidated profit of €2.1 billion for the first nine months of 2016. Owing to this satisfying result, the reinsurance powerhouse expects that this year’s profit will “significantly exceed” the €2.3 billion projected in May.

Jörg Schneider, Munich RE CFO said: “Munich Re is well on track with this quarterly profit of almost €700 million. We are now more optimistic about our profit guidance.” 

But whether and to what extent the reinsurer exceeds the profit guidance of well over €2.3 billion for 2016 “depend above all on the development of major losses, the capital markets and exchange rates,” Munich Re said in a statement.

Munich’s reinsurance business contributed €692 million of the consolidated result for the third quarter − influenced by lower than anticipated claims expenditure and absence of major losses in life insurance; and below-average random incidence of major losses in property-casualty reinsurance.

The ERGO field of business posted €52 million consolidated result for the third quarter, a decline from the prior year’s €100 million.

Munich Health’s consolidated result for the third quarter amounted to €44 million, down from prior year’s €45 million.

Munich’s investment profit climbed 5.7% to €1,619 million from last year’s €1,532 million.


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