Bullish Munich Re predicts a good 2013
Munich Re, the biggest reinsurer in the world, has posted healthy profits for the business in 2012 on the back of what it described as its good risk management and underwriting discipline. And Nikolaus von Bomhard, the company’s chief executive, said he is optimistic for the company’s prospects in 2013.
The German company made a net profit of €3.2 billion in 2012 compared with €712 million in 2011. The company grew its gross written premium last year by 5.1 per cent across the whole business to €51.9 billion while the gross written premiums written by its reinsurance business alone increased by 8.2 per cent to €28 billion. Its combined ratio in the property/casualty part of this business was 91 per cent compared with 113 per cent in 2011.
On the back of these results the group intends to pay an increased dividend to shareholders of €7 a share compared with €6.25 last year. The company’s CEO von Bomhard expressed optimism about what 2013 would hold for the group despite acknowledging a still very tough economic climate.
“Even though the consolidation of state finance and high unemployment will result in slower economic growth momentum in many industrialised countries, we remain optimistic for our business,” he said. “For 2013 we are aiming for a result of close to €3 billion.”
The company’s reinsurance business performed especially well in 2012 delivering the bulk of the company’s overall net profit. This was partly because big losses were below expectations. Natural catastrophe losses amounted to around €1.3 billion in 2012 compared with €4.5 billion the year before. The biggest loss was Hurricane Sandy which cost Munich Re some €800 million before tax.
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