Having turned a profit of E2.1 billion in the first half of 2006, German reinsurance company Munich Re has achieved three quarters of the E2.6-2.8 billion target for the year.
The E2.1 billion profit for the period compares to just E876 million for the first six months of 2005.
The company benefited from a combination of increased premiums which were driven up in the wake of the 2005 storm season and lower claims in the first half of 2006. However, with an increased probability of higher claims from storm damage in the second half of the year, Nikolaus von Bomhard, chairman of Munich Re’s board of management remained only cautiously optimistic.
Experience shows that the second half of the year brings higher burdens from major losses in reinsurance. But we have reason to be optimistic, given business performance to date, our well-balanced portfolio, and our selective risk acceptance. Even if we are affected more heavily than in the first half of the year by major losses or by a further moderate price fall on the stock markets, our target for 2006 – a 15% return on risk-adjusted capital – is still within reach, commented Mr von Bomhard.