The Telegram - News - Canada - World - Business

Article

Print
Send to a friend
Comment (0)

Few disaster losses, better investment result boost earning at Munich Re

Published on August 7, 2012; Published on August 7, 2012

Topics :: Munich Re , FRANKFURT , United States

FRANKFURT - Reinsurer Munich Re says second quarter profit improved 10 per cent from a year ago thanks to a better investment result and fewer expenses for natural disasters.

Net profit rose to €812 million ($1.0 billion) from €738 million in the second quarter last year. Gross premiums rose 5.5 per cent to €12.63 billion.

The company benefited from not having to write down Greek government bonds, which cost it €125 million in the year ago quarter. That quarter's earnings were also burdened by claims for tornados in the United States.

CEO Nikolaus von Bomhard said Tuesday that the current low level of interest rates was a hazard for its business — "far greater than the volatility of markets or the worsened global economy." It invests much of its premium income in interest-bearing securities.

©

Rate
Top of the page

Submit a comment

Submit a comment Your name* Email* (we keep all emails private) Write your comment here*

Agreement

We ask that users remain courteous. You may not post insulting, discriminatory or inappropriate content, which may be removed at our discretion. We are not responsible for user content and opinions. Use of this site as well as content submission & ownership are governed by our Conditions of Use and Privacy Policy.

Member organizations should be non-profit in nature, and promote legal activities. Any organization found promoting illegal activities or commercial products or services will be deleted from the site.

I agree with these conditions.