Munich Re sees further writedowns on Greek bonds in Q3

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Munich Re, the world's biggest reinsurer, said Monday it expected to make further writedowns on its holdings of Greek bonds in the third quarter of this year.

Already, in the second quarter, the reinsurance giant was hit by 703 million euros ($968 million) in writedowns, knocking 125 million euros off its bottom-line for the period.

Nevertheless, despite the additional writedowns and a difficult year of major natural catastrophes, the group was confident it would remain in profit and be able to pay shareholders a stable dividend, finance chief Joerg Schneider told a conference in Berlin.

For 2010, Munich Re paid a dividend of 6.25 euros per share.

Munich Re shares were sharply lower on the Frankfurt stock exchange on Monday, showing a loss of 2.28 percent at 95.61 euros in a generally weaker market.

© 2011 AFP

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