On the basis of preliminary calculations, Munich Re increased its consolidated profit significantly to €2.56bn in 2009 (previous year: €1.58bn). The profit for the fourth quarter totalled €0.78bn (0.11bn).
Shareholders are again set to benefit substantially from the Group’s performance: subject to approval by the Supervisory Board and the Annual General Meeting, the dividend will rise by 4.5% to €5.75 (5.50) per share.
Munich RE CFO Jörg Schneider said: “This is another good result that demonstrates Munich Re’s earnings strength. We are realistic in our expectations and remain dependable for investors”. Despite the challenges posed by the market environment in 2009, we were even able to slightly exceed our ambitious return target of 15% on risk-adjusted capital after tax.” Schneider emphasised: “We want our shareholders to participate in this success through a further increase in our already high dividend.”
“Bearing in mind that the financial crisis reached its climax in the first quarter, we can be very satisfied with the figures for the year. The substantial increase in profit means shareholders can enjoy a good return on capital and approve a solidly earned dividend increase at the AGM.”
Torsten Jeworrek, Munich Re’s Reinsurance CEO comments: “The renewals involved some tough negotiating. For us, there is no alternative to risk-adequate prices if we want to keep our business sustainable.” Treaties that showed no sign of being profitable were consistently terminated. “Even in this somewhat testing environment, we have maintained the quality of our portfolio and can therefore be satisfied with the renewals”, he added.
“Our strategy of positioning ourselves somewhat more broadly in the Group and in reinsurance is bearing fruit. It enables us to take our opportunities in areas of business for which a high level of risk competence is required.”
