The world’s biggest re-insurance group, Munich Re, said Thursday it aimed for a full-year net profit of between 2.2-2.5 billion euros (3.3-3.7 billion dollars) after posting a net profit of 644 million euros in the third quarter.
Analysts polled by Dow Jones Newswires had forecast a higher net profit of 727 million euros for the three-month period.
Munich Re also said it expected gross premiums on its primary insurance and reinsuarnce business to be between 40-42 billion euros.
In the third quarter, they gained 11.7 percent from the same period a year earlier to 10.3 billion euros, slightly better than analysts had expected.
Munich Re benefitted from consolidated acquisitions this year, and “we are adhering to our objective of 15 percent RORAC (Return On Risk-Adjusted Capital) after tax over the cycle”, finance director Joerg Schneider was quoted as saying in reference to the industry benchmark.
“But in an environment marked by low interest rates, it will be considerably more difficult to achieve,” he added.
Jörg Schneider, the CFO said: “We have continued to gear our operations resolutely to profitability and are once again presenting good results. Our shareholders are glad to rely on this continuity from Munich Re”. “If the rest of the financial year 2009 goes so well, we may even reach our ambitious RORAC target of 15% after tax.”
Click here to read the summary of Munich RE’s figures for the first nine months
