Munich Re forecasts annual loss

25th November 2003, Comments 0 comments

25 November 2003 , MUNICH - Munich Re, the world's largest re-insurer, Tuesday posted quarterly profits for the first time since the start of 2002 but forecast a net loss for the year as a whole. It would be the first time since 1906, when the group incurred heavy costs as a result of the San Francisco earthquake, that Munich Re booked a net annual loss. The group posted third-quarter net profits of EUR152 million. This compared to a loss of EUR859 million the previous year but was below market expectation

25 November 2003

MUNICH - Munich Re, the world's largest re-insurer, Tuesday posted quarterly profits for the first time since the start of 2002 but forecast a net loss for the year as a whole.

It would be the first time since 1906, when the group incurred heavy costs as a result of the San Francisco earthquake, that Munich Re booked a net annual loss.

The group posted third-quarter net profits of EUR152 million. This compared to a loss of EUR859 million the previous year but was below market expectations.

Munich Re said it expected a net loss for the year as a result of high tax provisions, write-downs and losses on the disposal of shares, but anticipated the pre-tax result "will show a very clear profit".

Earnings will be improved by the good performance of the underwriting business, it said. Turnover is expected to remain this year at about EUR40 billion.

At EUR247 million, write-downs and losses on the disposal of securities were comparatively small in the third quarter, the group said.

A marked recovery on stock markets and good underwriting results helped business performance. The group also raised nearly EUR four billion from the issue of 50.9 million new shares.

With the early sale of its 25.7 percent stake in Hypo Real Estate Holding AG in October, Munich Re significantly reduced its exposure in the German banking sector.

The group also recently sold 7.5 million Allianz shares to reduce its stake in the German insurance group to about 12.2 percent. The profit from this sale will be booked in the fourth quarter.

DPA
Subject: German news

 

 

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