Munich Re says to beat forecasts despite disasters

German reinsurance giant Munich Re on Friday reported a surge in profits in the third quarter, defying natural disaster payouts, adding that it expects to beat its 2019 annual forecasts.

Between July and September, the group — which covers insurance firms against their risks — lifted net profits 76 percent year-on-year, to 850 million euros ($946 million).

Munich Re said the fatter bottom line was down to “good operational performance” as well as favourable exchange rate moves and “very good” income from its investments.

And the company “expects to beat its target for the consolidated result of 2.5 billion euros for 2019, despite typically considerable uncertainties about developments in major losses and the capital markets during the rest of the year.”

Friday’s figures remain provisional and will be explained in more detail at its scheduled earnings release on November 7, Munich Re said.

In 2018, the company’s net profits were six times higher than a year before, at 2.3 billion euros, after 2017 was plagued by devastating natural disaster damage.

Shares in Munich Re were up one percent at 247.60 euros around 11:30 am in Frankfurt (0930 GMT), compared with a DAX index of blue-chip stocks up 0.25 percent.

ys/tgb/dlc/cw