Munich Re tips year-on-year boost to second-quarter results


Munich Re, the reinsurer, has said its second-quarter results will be well ahead of last year because of a lack of major claims.

In a statement after the market closed, the company said it would post a €1bn profit for the period, well ahead of last year’s €728m.

It said the second quarter of 2019 had been a quiet one for major losses, and the costs of claims from previous years had not been as high as initially expected.

However Munich Re said it was sticking with its guidance of a full-year profit of €2.5bn.

James Shuck, analyst at Citi, said the company’s full-year guidance looked “increasingly conservative”.

He added: “We expect consensus estimates to move up by around 13 per cent but with no follow-through into outer years.”

The company is due to report its half-year results on 7 August.

Munich Re’s comments on the scale of claims from previous years contrast news from other big insurance and reinsurance companies, which have been saying claims from last year’s natural disasters — particularly Hurricane Michael in the US and Typhoon Jebi in Japan — have been more expensive than they initially thought.



READ SOURCE

READ  New ransomware targets US and European companies

LEAVE A REPLY

Please enter your comment!
Please enter your name here