Munich Re: earnings fall on higher claims

(CercleFinance.com) - Munich Re, the world's biggest reinsurer, on Wednesday reported a fall in profit for its first quarter, due to higher claims.


The company achieved quarterly net profit of 633 million euros, compared with 827 million euros in the first three months of 2018, citing "higher basic losses and greater expenditure for claims."

Munich Re also said that it recorded an "extraordinary" result in the first quarter of 2018, which was practically free of major losses.

In the past quarter, operating profit at its reinsurance segment fell to 633 million euros, from 1.05 billion euros last year, while its ERGO insurance unit saw its profit rise to 85 million euros, from 77 million euros.

These results were generally weaker than the consensus, analysts noted.

The company is optimistic about the remainder of the year, still expecting consolidated earnings of approximately 2.5 billion euros in 2019, it said in a statement.

Munich Re's shares are currently down 1.2% at 208 euros this morning, lagging a 0.7% rise in Germany's DAX index. They have risen 9% year-to-date.

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