MUNICH--Germany's Munich Re AG (MUV2.XE) Tuesday reported a 9.8%
rise in net profit in the second quarter, helped by substantially
lower costs for severe weather damage and the absence of
impairments on Greek sovereign debt that weighed on last year's
results.
Munich Re, the world's largest reinsurer by premium revenue,
also lifted investor hopes for topping the full-year guidance for
profit and revenue, saying the results achieved between January and
June put it on track for coming out slightly above its full-year
goal of around 2.5 billion euros ($3.1 billion) after-tax profit,
including minorities.
"With a profit of EUR1.6 billion for the first half year, we
have achieved well over half of our target of around EUR2.5
billion. So we are well on track to slightly surpass the originally
envisaged profit for the year," Chief Executive Nikolaus von
Bomhard said.
For gross premium revenue, Munich Re now expects between EUR50
billion and EUR52 billion, up from the previous forecast of EUR49
billion to EUR51 billion range. Both higher forecasts are due to
expected improvements in the reinsurance operations.
Net profit, excluding minorities, rose to EUR808 million from
EUR736 million, above of a Dow Jones Newswires consensus poll of
EUR685 million. Analysts had generally expected a higher tax
rate.
Gross premium revenue rose 5.5% to EUR12.63 billion from
EUR11.97 billion, below the forecast EUR12.56 billion
Munich Re competes with peers such as Swiss Re AG (SREN.VX),
Hannover Re AG (HNR1.XE) and Scor SE (SCR.FR) for business with
primary insurers seeking to spread risks on their books
further.
Munich Re shares closed up EUR0.25, or 0.2%, at EUR117.60
Monday. The shares gained 27% over the past year, raising market
value to EUR21.1 billion.
-Write to Ulrike Dauer at ulrike.dauer@dowjones.com
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