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Zurich

Catastrophes dent Munich Re profit

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Munich Re has posted a “small profit” of €392 million ($615.24 million) for last year, as predicted following hurricanes Harvey, Irma and Maria.

The sum compares with a 2016 profit of €2.58 billion ($4.05 billion).

Gross written premium was up to €49.11 billion ($77.16 billion) from €48.85 billion ($76.78 billion).

Investment income was €7.61 billion ($11.96 billion), up from €7.56 billion ($11.88 billion).

The reinsurance combined operating ratio deteriorated to 114.1% from 95.7%.

CFO Jorg Schneider says Munich Re’s capital strength allowed it to withstand high losses from natural catastrophes.

“[This year] we will be pressing ahead with the digital transformation of Munich Re, and also seizing opportunities for profitable growth in traditional business,” he said.

“Reinsurance prices improved slightly in large sections of the market at the January renewals – a trend likely to strengthen in coming renewal rounds.”