• Germany's news in English
 
app_header_v3

Euro crisis, earthquakes slam Munich Re profits

The Local · 2 Feb 2012, 10:20

Published: 02 Feb 2012 10:20 GMT+01:00

Munich Re said in a statement it booked bottom-line net profit of €710 billion ($935 million) in 2011, a drop of 71 percent from a year earlier.

"The year was marked by a series of severe earthquakes and many weather-related catastrophes. In addition, there was the worsening of the sovereign debt crisis in the eurozone," the statement said.

"We have never experienced a year like 2011 before - extreme burdens from natural catastrophes combined with the financial crisis, which flared up again after the slight recovery in 2009 and 2010," said chief financial officer Jörg Schneider.

"Given the huge strains these placed on results, it is a notable achievement that we still posted a profit of €710 million," Schneider said.

While gross premiums for the year rose by 8.9 percent to €49.6 billion, investment earnings dropped 21.8 percent to €6.8 billion, not least as a result of €1.2 billion in writedowns on the group's holdings of Greek government securities.

Munich Re said that losses from natural catastrophes amounted to €4.5 billion for the entire year, with the deadly earthquake and ensuing tsunami in Fukushima, Japan, costing it €1.5 billion at a pre-tax level.

The group also said it expected insurance claims resulting from the earthquakes in New Zealand to amount to around €1.5 billion. And flooding in Thailand was projected to lead to claim costs of around €500 million.

Taking the fourth quarter alone, Munich Re's net profit rose by 33.1 percent to €630 million, beating analysts' expectations. In the wake of the results, Munich Re said it planned to pay shareholders an unchanged dividend of €6.25 per share.

Story continues below…

Investors welcomed the news and Munich Re shares were showing gains of around 0.64 percent on the Frankfurt stock exchange on Thursday, outperforming the general market which was up 0.05 percent.

AFP/mry

The Local (news@thelocal.de)

Your comments about this article

Today's headlines
The Local List
The 10 worst German cities for students to find digs
Photo: DPA

It's the start of autumn, which means the start of the university year. But along with the excitement comes the stress of finding housing - and in some glamorous locations this can be a nightmare.

German broadcaster sues Turkey over confiscated video
Akif Cagatay Kilic. Photo: DPA

German international broadcaster Deutsche Welle said Monday it had filed a civil complaint after a Turkish minister's office confiscated a taped video interview with him.

Germany's 'James Bond' goes on trial over tax evasion
Werner Mauss. Photo: DPA.

Germany's former top spy, Werner Mauss, went on trial on Monday accused of hiding millions of euros from authorities.

Germany holds first national 'mermaiding' championship
Photo: DPA

Ariel would be proud.

Gallery
15 pics that prove Germany is totally enchanting in autumn
The Max-Eyth-See in Stuttgart. Photo: DPA.

As summer fades into a distant memory and you start to begrudge trading Birkenstocks for boots, these pictures may help change your perspective on the new chill in the air.

Left politician who smuggled refugee could lose immunity
Diether Dehm. Photo: DPA.

Die Linke (Left Party) politician Diether Dehm could lose his immunity as an elected official after he admitted to smuggling a refugee into Germany.

Merkel party leader admits sexism is a problem
Jenna Behrends complained that a member of CDU's Berlin government had called her a "big sweet mouse" in front of a large group. Photo: Sophia Kembowski/dpa

A leader of German Chancellor Angela Merkel's conservative party admitted Sunday that it has a problem with sexism in its ranks.

Ethiopia's Bekele nears record in Berlin marathon win
Participants in the Berlin marathon take to the streets on Sunday. Photo:Paul Zinken/dpa

Kenenisa Bekele narrowly missed out on the world record on Sunday as the Ethiopian won the Berlin marathon ahead of former winner Wilson Kipsang.

Europe needs deals to send migrants home: Merkel
Angela Merkal poses with Bulgaria's Prime minister Boyko Borissov (L) and Austrian chancellor Christian Kern (R) in Vienna. Photo: Joe Klamar/AFP

Europe needs to secure more deals to send rejected migrants home, German Chancellor Angela Merkel has told counterparts in Vienna.

Germany sees 'turning point' in birth rate decline
Children at a a kindergarten in Swabia. Photo: Nikolaus Lenau/Flickr

Is Germany's three-decade decline in birth rate now over?

Sponsored Article
The Inner Circle: the secret to dating in Berlin
Lifestyle
6 things about Munich that’ll stay with you forever
Sponsored Article
Why Jordan is the ‘Different’ East
Lifestyle
10 pieces of German slang you'll never learn in class
National
Seven great reasons to stay in Germany this September
National
Ouch! Naked swimmer hospitalized after angler hooks his penis
Sponsored Article
Retiring abroad: ensuring your health is covered
National
Six reasons why Berlin is now known as 'the failed city'
National
15 tell-tale signs you’ll never quite master German
Culture
7 American habits that make Germans very, very uncomfortable
Rhineland
Story of a fugitive cow who outwitted police for weeks before capture
Sponsored Article
Life in Jordan: 'Undiscovered treasure'
Culture
Eleven famous Germans with surnames that'll make your sides split
Lifestyle
The best ways to get a visa as an American in Germany
Sponsored Article
The Inner Circle: the secret to dating in Berlin
Gallery
Germany's 17 Olympic gold medals in pictures
14 facts you never knew about the Brandenburg Gate
Society
Ten times Germans proved they really, really love beer
National
Six things you need to know when moving to Germany
Travel
These 10 little-known German towns are a must see
International
German scientists prove birds can sleep while flying
Technology
London v. Berlin: Which is better for startups?
Lifestyle
13 mortifying mistakes German learners always make
Travel
Enter if you dare: Berlin's best abandoned haunts
Lifestyle
10 rookie errors all Brits make when they arrive in Germany
6,513
jobs available
Toytown Germany
Germany's English-speaking crowd