Munich Re Overcomes Catastrophe Losses to Post 3Q Net Profit

By Ed Frankl

Muenchener Rueckversicherungs-Gesellschaft AG said Tuesday that it took high losses from Hurricane Ida and summer floods in Europe in the third-quarter but still achieved a profit, as it maintained its full-year guidance.

The German reinsurer generated quarterly net income of around 400 million euros ($464.5 million) after what it said was continued positive performance in all segments, a high investment result, gains on disposals and a high currency translation.

The result compares with expectations of a loss of EUR10 million, according to consensus estimates provided by the company.

Munich Re said Hurricane Ida in the U.S. caused around EUR1.2 billion in property-casualty reinsurance losses and that devastating floods that struck central Europe in July cost it roughly EUR600 million in property-casualty reinsurance and its ERGO subsidiary.

The Bavarian company said its result for the first nine months of the year was around EUR2.1 billion and that it still expects to meet its overall profit target of EUR2.8 billion.

The forecast takes into account higher Covid-19 pandemic losses than expected at its second-quarter results, the company said.

Full results will be announced on Nov. 9, Munich Re added.

Write to Ed Frankl at [e-mail]

(END) Dow Jones Newswires

October 19, 2021 08:28 ET (12:28 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.