Munich Re says profits halved in Q3
German reinsurance giant Munich Re said that one-off factors cut bottom-line profits almost in half in the third quarter, but it remained confident for the full year.
Chief financial officer Joerg Schneider said in a statement he was "very satisfied with the quarterly result, given that there had been a number of negative impacts.
"It is another good result, even when the influence of one-off effects is factored out. We are holding our own in spite of a difficult business environment," Schneider insisted.
In the period from July to September, Munich Re booked net profit of 637 million euros ($861 million), down from 1.13 billion euros a year earlier.
Operating or underlying profit fell by 25.4 percent to 1.07 billion euros and gross premium income fell by 5.4 percent to 12.497 billion euros.
The third-quarter figures were "marked by various factors," said CFO Schneider.
On the negative side, the reinsurer booked "numerous major losses in property-casualty primary insurance and reinsurance, increased expenditure in life reinsurance in Australia and the United States, a loss on the disposal of the Windsor Health Group, the performance of derivative financial instruments, and significant negative currency effects," he explained.
But these were partially offset by positive factors such as high income from the restructuring of its equity portfolio.
"An accumulation of these special factors can substantially impact a quarterly result", Schneider said.
"But they tend to balance each other out in the long run. So the key indicator is business performance adjusted to eliminate such factors, and here we are well on track."
Looking to the full year, "Although we are not home and dry yet, we are very confident of achieving a profit of 3.0 billion euros," Schneider said.
© 2013 AFP