LARGE catastrophe losses and the collapse in the value of Greek sovereign debt slashed profits at Munich Re this year, it said yesterday.
The world’s biggest reinsurance group made just €80m (£68.7m) net profit in the nine months to September, down from almost €2bn in the same period in 2010, despite its revenues from premiums rising more than nine per cent to €34.2bn.
Third quarter profits were higher at €290m, though still down 63 per cent compared with a year earlier.
“Our result was certainly affected by the capital-market and currency turbulence,” chief financial officer Joerg Schneider said.
Munich Re took a €1.5bn pre-tax loss from natural disasters earlier in the year and another €195m loss from Hurricane Irene in the third quarter.
Munich Re had to write off €933m of the value of its Greek bonds, and cut the value of its Italian bond holdings by €1.4bn.
It instead ploughed capital into AAA-rated bonds issued by Germany, France and the Netherlands as well as strong states outside the Eurozone.