German reinsurance giant Munich Re at the International Congress Center in Munich, southern Germany.
Sven Hoppe | AFP | Getty Images
German reinsurance group Munich Re forecast more Covid-19-related losses in its reinsurance business on Tuesday than previously expected, but said its overall profit target for 2021 was achievable.
Munich Re and the industry have recovered from the effects of last year’s coronavirus pandemic outbreak, but Munich Re nevertheless expects Covid-19 losses in its reinsurance business to total 800 million euros ($924.32 million) this year. will amount to EUR 700 million earlier.
Despite those losses and hefty claims from storms in Germany and the United States, a profit target of €2.8 billion for 2021 remains “within reach,” said financial director Christoph Jurecka.
The reaffirmation of its target came when it reported its third quarter results.
Net profit of 366 million euros ($422.88 million) in the third quarter compared to 199 million euros a year earlier. Last month, it said profits for the period were around $400 million.
The stock would open 2.3% lower. The Munich-based company said results were dampened by 170 million euros in Covid-19-related losses at its life and health reinsurance division.
That impact was “higher than expected,” Munich Re said.