Munich Re attributed the decline in second-quarter profit to losses amounting an approximately €700m due to the impact of Covid-19 pandemic
Munich Re / Königinstraße 107, München View from Königinstraße. (Credit: Wzwz/Wikipedia.)
Munich Re has reported a net profit of €579m, or €4.14 per share, for the second quarter of 2020, a 42% decrease compared to €993m, or €6.88 per share, for the corresponding quarter of 2019.
The German reinsurance business attributed the decline in second-quarter profit to losses amounting an approximately €700m due to the impact of Covid-19 pandemic.
The reinsurance business of the group has reported a net income of €407m for the second quarter of 2020, a 52.6% decrease compared to €858m for the same period of the previous year.
Munich Re’s ERGO business has reported a net income of €173m for the second quarter of 2020, a 27.4% increase compared to €135m for the corresponding period of 2019.
Munich Re chairman of the board of management comments on the results
Munich Re chairman of the board of management Joachim Wenning said: “The world is far from defeating the coronavirus. That is why we have been doing everything in our power to protect staff and their families as well as clients and contractual partners from Covid-19.
“Munich Re will emerge from this crisis economically stronger. We are growing profitably while taking steps to benefit from the significantly improved market conditions for reinsurers.”
Munich Re has reported a net profit of €800m, or €5.71 per share, for the first half 2020, a 50.8% decrease compared to a net profit of €1.6bn, or €11.22 per share, for the same period of last year.
For the first half of 2020, the reinsurance business of the company has reported a net income of €555m, a 60.5% decrease compared to €1.4bn for the first half of 2019.
ERGO has reported a net profit of €245m for the first half of 2020, an 11.2% increase compared to €220m for the same period of the previous year.
Wenning added: “In addition, we are utilising the capital originally earmarked for the 2020/2021 share buy-back programme, which we will not implement, to invest in profitable reinsurance growth.
“Prices have risen in nine consecutive renewal rounds, and premium income has grown correspondingly. With our high-quality portfolio, we expect to post a premium volume of €54bn in 2020, which would set a new record in the 140-year history of Munich Re.”