Munich Re says Q1 worse than expected, down on year
German reinsurance giant Munich Re warned Wednesday that results in the first quarter would come in lower than expected and sharply lower than the previous year's levels.
In the period from January to March, there were only a small amount of major damage claims, "nevertheless, we're still expecting the first-quarter results to be substantially down on last year and lower than expected," said chief executive Nikolaus von Bomhard.
"The financial markets were very volatile in the first quarter," he told the group's annual shareholder meeting.
"That meant that share prices declined and we will have to make writedowns."
Munich Re shares plunged heavily on the CEO's comments, showing a loss of 3.98 percent at 173.60 euros in a slightly firmer market.
Nevertheless, von Bomhard, who is stepping down next year, said that Munich Re was sticking to its target for full-year net profit of 2.3-2.8 billion euros this year.
In 2015, the group booked bottom-line profit of 3.1 billion euros.
Like insurers and banks, Munich Re is feeling the squeeze on its profits from low interest rates.
© 2016 AFP