Financial Technology

Financial Technology

Share
March 13, 2012

Munich Re targets big 2012 earnings increase



BERLIN (AP) — Reinsurer Munich Re AG is targeting a big increase in earnings this year after the earthquakes in Japan and New Zealand weighed on profits in 2011.

The company said Tuesday it is aiming for net profit of about euro2.5 billion ($3.3 billion). That's far higher than last year's euro712 million, when the pair of earthquakes led to hefty claims. Munich Re's earnings were also hit last year by exchange rate volatility and the fallen value of Greek government bonds.

CEO Nikolaus von Bomhard said the company faced an "exceptional situation" last year but that he was optimistic over 2012 as the earthquakes have highlighted the need for reinsurance.

Reinsurance companies write backup insurance for primary insurers so the system can handle large losses from natural disasters.



Share


Comments powered by Disqus