• Germany edition
 
Munich Re weathers natural disasters to deliver profits
The aftermath of Chile's devastating earthquake in April 2010. Photo: DPA

Munich Re weathers natural disasters to deliver profits

Published: 03 Feb 2011 15:42 GMT+01:00
Updated: 03 Feb 2011 15:42 GMT+01:00

The result represented a slide of five percent from the 2009 figure of €2.56 billion but was in line with an average analyst forecast of €2.46 billion compiled by Dow Jones Newswires.

Shares in the re-insurance group showed a slight gain in early trading.

Total losses from natural catastrophes last year amounted to roughly €1.56 billion, more than seven times the 2009 figure of €200 million, a statement said.

"Despite weighty major losses, which also affected us at the end of the year, we are presenting a good result," finance director Joerg Schneider said. "Our shareholders are to benefit without delay."

Munich Re's board will recommend an increased dividend of €6.25 per share, up from with €5.75 in 2009, he said.

The group also planned to buy back shares worth €500 million before its annual general meeting in 2012, the statement said.

Gross premiums written by the group last year gained almost 10 percent to €45.5 billion.

But the world's biggest re-insurance company in terms of gross premiums was hit like its rivals by a series of natural disasters in 2010, the largest of which for Munich Re was "the devastating earthquake in Chile," it said.

An earthquake in New Zealand and flooding in northeastern Australia lead to respective claims of €340 million and €270 million. Looking ahead, Munich Re said only that in 2011, it "expects a somewhat better technical result than in 2010 and a consolidated result of around the same level."

Digging into the data, Munich Re's income from investments showed a gain of almost 10 percent last year to €8.6 billion.

And the ERGO insurance group, in which Munich Re has concentrated its primary insurance activities, reported a profit of €355 million, more than double the 2009 figure of €173 million.

Shares in the group edged 0.13 percent higher to €117.50 in opening trading on the Frankfurt stock exchange, while the DAX index of German blue-chips was flat overall.

AFP/rm

The Local (news@thelocal.de)

Your comments about this article

11:45 February 4, 2011 by auniquecorn
You can never go wrong with investing in an insurance firm.

At the fee´s they rape their customers with, it can only increase.

Of course that is something to brag about.
Today's headlines
Frankfurt court lifts national Uber ban
Uber manager for Germany Fabien Nestmann leaves the Frankfurt court on Tuesday. Photo: DPA

Frankfurt court lifts national Uber ban

App-based chauffeur car service Uber is no longer illegal in Germany, a Frankfurt court ruled on Tuesday afternoon. READ  

Chef admits Düsseldorf killing spree
Yanquing in court in Düsseldorf on Tuesday. Photo: DPA

Chef admits Düsseldorf killing spree

A gunman who killed three people in Düsseldorf and injured four others in a shooting spree at two lawyers’ offices admitted his guilt on Tuesday. READ  

Man dies six days after chemical blast
The plant was destroyed in the explosion. Photo: DPA

Man dies six days after chemical blast

An engineer who was called to fix a defect at a chemical waste plant which then exploded has died of his injuries – six days after the huge blast near Bremen. READ  

German universities tumble in global rankings
Students at Heidelberg University. Photo: DPA

German universities tumble in global rankings

Three-quarters of German universities have fallen in global standings in the last year, with just one institution among the top 50 in the world, according to rankings released on Tuesday. READ  

Germany prepares to send drones to Ukraine
A Luna drone belonging to the German military. Photo: DPA

Germany prepares to send drones to Ukraine

German unmanned drones could soon be flying over eastern Ukraine to keep an eye on pro-Russian rebel troop movements. READ  

'Why I'm camping for six days outside Apple store'
Photo: The Local

'Why I'm camping for six days outside Apple store'

Most holidaymakers on a week-long camping trip pitch up by lakes or next to the beach. But two Berliners are hoping to break a record by settling in for six days outside the city's Apple Store to be the first to get their hands on new iPhone 6. READ  

Netflix launches in Germany (in English too)
Some of the cast of Orange is the New Black at a photocall in Mexico. Photo: DPA

Netflix launches in Germany (in English too)

UPDATE: TV streaming service Netflix opened its virtual doors in Germany on Tuesday in the face of stiff competition from existing players. Users will be able to watch hit shows and movies in English on the German service. READ  

Auschwitz guard charged over 300,000 deaths
The gates at the former concentration camp of Auschwitz. Photo: DPA

Auschwitz guard charged over 300,000 deaths

A 93-year old man from Lower Saxony will stand trial for 300,000 counts of accessory to murder at the Auschwitz death camp while a member of the Waffen-SS. READ  

Germany can't crack 'CIA double agent' laptop
Photo: DPA

Germany can't crack 'CIA double agent' laptop

An alleged CIA double agent secured his laptop so well that German secret services have failed to crack it since he was arrested in July, according to reports. READ  

Lufthansa pilots abandon Frankfurt strike plans
Ready to go again. Photo: DPA

Lufthansa pilots abandon Frankfurt strike plans

UPDATE: Pilots' union Cockpit has announced that a planned strike at Frankfurt Airport on Tuesday has been called off. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Marks & Spencer
Sponsored Article
Fashion Ladies of the Local: Win a New Autumn Look
Photo: DPA
Politics
These men want to be the next mayor of Berlin
Photo: Shutterstock
Business & Money
The three types of firms hiring foreigners
Photo: DPA
National
Neo-Nazis are attacking newspaper offices
Photo: DPA
Gallery
Election night in Brandenburg and Thuringia
Photo: DPA
Berlin
Berlin spy station sees tourism boom
Photo: DPA/ESA
Tech
VIDEO: How one German astronaut sees Earth
Photo: DPA
Berlin
Frisky couple shock Berlin commuters
Photo: DPA
Politics
Are Germans right to want cooler relations with USA?
Photo: Bayernpartei/DPA
Politics
Why some Bavarians want a Scottish 'Yes'
Photo: DPA
Gallery
12 things to do in Berlin for less than a latte
Photo: Facebook
National
Bavarian waiter breaks beer-carrying record
Sponsored Article
Bilingual education from nursery to graduation at Phorms
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
National
Share news tips with The Local Germany
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,283
jobs available
Toytown Germany
Germany's English-speaking crowd