Munich Re profit up 3.8%, takes Greek debt hit
The world's biggest re-insurance group, Germany's Munich Re, said Thursday that its second quarter net profit gained 3.8 percent on the year to 736 million euros ($1.05 billion).
Munich Re said that to ensure clarity in its figures it had had based the value of Greek bonds it owns on their market level as of June 30.
This resulted in a total charge of 703 million euros, subtracting 125 million euros from the net profit figure.
The group was boosted by price increases in some reinsurance segments, particularly those exposed to natural disasters, chairman Nikolaus von Bomhard said who cited improved earnings in its primary insurance activities.
Gross premium revenue gained 9.2 percent from the second quarter of 2010 to 11.97 billion euros, which was less than the 12.05 billion euros expected by analysts polled by Dow Jones Newswires.
A statement said Munich Re still expects "to close the year 2011 with a profit," although its original target of a "consolidated result of around 2.4 billion euros can no longer be achieved" in light of the performance in the first six months of the year.
© 2011 AFP