Munich Re sees its profit fall by a third in the second quarter

Munich (awp/afp) – German reinsurance giant Munich Re saw its net profit fall by 30.5% in the second quarter, to 768 million euros (nearly 750 million Swiss francs) in a context of “inflation, economic cooling and war in Ukraine,” he announced on Tuesday.

The group, whose core business is to support insurers against the risks they incur, saw its life and health insurance branch grow with a profit of 147 million euros from April to June, after a balance positive of 93 million euros in the second quarter of 2021 then marked by the Covid-19 pandemic and the numerous deaths linked to the virus.

The reinsurer has also confirmed its forecasts for the whole of the 2022 financial year, still claiming to aim for an annual profit of 3.3 billion euros. It warned in a statement, however, that its forecast comes amid “increasing uncertainty due to fragile general economic developments, volatile capital markets and an uncertain course of the Covid-19 pandemic”. .

Munich Re also stressed that the war in Ukraine, which began on February 24 with the invasion of Russian troops, posed “serious uncertainties” due to the financial consequences of the conflict.

This deadly conflict cost Munich Re 90 million euros in the second quarter and around 200 million euros since its outbreak.

Natural disasters cost 253 million euros from April to June, against 203 million a year earlier.

Over the first six months of its financial year, the Munich group recorded a net profit of 1.37 billion euros.


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