Munich Re swings to profit after sharp decline in disaster claims
THE WORLD’S biggest reinsurer, Munich Re, swung back to profit in the first quarter, helped by damage claims far below those from devastating earthquakes in Japan and New Zealand a year earlier.
Net profit after minorities was €780m (£630m) – a world away from the near €750m loss in the first quarter of 2011.
Munich Re said yesterday that major damage claims cost €264m in the first quarter, compared with around €3bn last year from the earthquakes in Japan and New Zealand and flooding in Australia.
Munich Re said premium volumes decreased by about three per cent in talks to renew reinsurance contracts in Japan, Korea and the US from 1 April. However, prices for renewed business rose by five per cent from their year-earlier level.
Munich Re said it expected to see rising prices for the contracts being renewed from 1 July in the US, Australia and Latin America.
Munich Re shares have risen by nearly 14 per cent from their year-earlier level but trail the gains at rivals Hannover Re , up 17 per cent, and Swiss Re, up by nearly 25 per cent.