Low disaster count puts Munich Re on track for 2017

 

German reinsurer Munich Re said Wednesday it was confident of meeting its objectives for 2017, after a "sound" second quarter with strong income from investments and low insurance payouts.

The group booked net profit of 729 million euros ($856 million) in the period from April to June.

That represented a drop of 25 percent from the same period a year earlier, but it beat analysts' expectations for a figure of around 685 million euros.

"A high investment result and below-average random incidence of major losses contributed to the sound result," Munich Re said in a statement.

Losses from natural disasters amounted to just 66 million euros in the second quarter, compared with some 335 million between April and June 2016.

A severe storm in the United States in early May alone accounted for some 25 million euros in damages.

But low payouts for disasters were countered by unfavourable exchange rates as the euro gained in value against other currencies over the quarter, the group added.

"Munich Re is well on track to reach its 2017 profit guidance," chief executive Joachim Wenning said, reiterating the group's objective for an annual net profit of between 2.0 and 2.4 billion euros.

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