In the second quarter of 2009, Munich Re recorded a profit of €703m, once more demonstrating its earnings strength. The result surpassed last year’s figure (€628m) by 11.9%. The profit for the first half-year totalled €1,123m (1,405m).
Nikolaus von Bomhard, Chairman of the Board of Management, stated: “We were able to benefit further from our capital strength and exploit our scope for profitable growth. We regard the effects of the economic crisis as limited in extent for the Munich Re Group.”
Von Bomhard stressed that Munich Re was well set particularly for the time after the crisis: “In reinsurance, you need to be more than just solid and financially strong: our clients want flexible, innovative solutions from us, based on our expertise. We have laid the foundations for this over the past two years. Now we can deliver.”
In primary insurance, ERGO returned to the profit zone in the second quarter. “Thanks to our consistent accounting policy, we can look ahead with confidence”, said von Bomhard. “In Germany, ERGO is on track. It is evident that we are faring well with the broad diversification of our business across business fields and regions.”
Summary of the Munich Re Group’s figures for the first half-year
In the first six months, the Munich Re Group recorded a satisfactory operating result of €2,119m (2,281m), of which €1,373m was earned in the second quarter. The investment result remained pleasingly stable at €3.6bn, increasing by 8.9% on the first half-year 2008. This represents a return on investment of 4.0%. Shareholders’ equity remained unchanged compared with the beginning of the year at €21.3bn. The annualised return on risk-adjusted capital (RORAC) amounted to 13.2% and the post-tax annualised return on equity (RoE) to 10.5%. The half-year profit totalled €1,123m (1,405m), whilst the consolidated result for the second quarter of 2009 came to €703m (up 11.9% on the second quarter of 2008). Gross premiums written rose by 9.8% to €20.7bn (18.9bn). If exchange rates had remained the same, premium volume would have increased by 8.8% compared with the same period last year.
As from the first quarter of 2009, Munich Re has applied the new accounting standard IFRS 8, thus gearing its segment reporting more closely to its internal reporting and management structure.
Since May, Munich Re has been offering its healthcare-related products to clients and partners outside Germany under the Munich Health brand. In this third field of business, the Group combines its global insurance and reinsurance know-how, including related services. Owing to its still relatively small volume, this field of business is not yet accounted for separately but is shown partly in the segment reinsurance life and health, and partly in health primary insurance.
The full report is available here