Frankfurt, Aug. 10, (dpa/GNA) – German reinsurance group Munich Re said it is on course to achieve its 2021 profit target, despite last month’s devastating floods in Europe.
Munich Re reported Tuesday its second-quarter consolidated profit was 1.11 billion euros (1.3 billion dollars), 91 per cent higher than last year’s 579 million euros.
Earnings per share were 7.89 euros, up 90.6 per cent from 4.14 euros a year ago.
The flood catastrophe in Germany and neighbouring countries is likely to put a burden Munich Re and its primary insurance subsidiary Ergo, but precise amounts are not yet available, management said.
Yet chief executive Joachim Wenning continues to expect a surplus of 2.8 billion euros for the year, as Munich Re anticipates advantageous business opportunities in the second half of 2021.
The coronavirus pandemic also continued to affect results.
The impact of Covid-19-related losses on the reinsurance business came to 241 million euros in the second-quarter, down from the prior year’s 700 million euros.
But Munich Re is now expecting associated coronavirus costs of 400 million euros in 2021 – twice as much as before.
GNA