Munich Re beats expectations and targets profits of €2.5bn

MUNICH Re, the world’s largest reinsurance company, yesterday announced a consolidated profit of €812m (£644m) for the three months to the end of June, putting the firm on course to beat its year-end targets.

Chief executive Nikolaus von Bomhard said he regarded the results as a “notable accomplishment” given the state of the Eurozone.

“With the profit for the first half-year, we have achieved well over half our target of around €2.5bn, so we are well on track to slightly surpass the originally envisaged profit for the year,” he added.

Gross premiums hit €12.6bn, an increase of 5.5 per cent, while the firm’s bottom line was boosted by an absence of major claims.

However the German firm must set aside €160m for claims resulting from crop damage in the US after this summer’s droughts and also warned of the potential for big payouts following this year’s hurricane season.