Munich Re reports tumbling Q3 profits

Munich Re posted a profit of roughly $110 million in the first nine months of 2011, compared to a profit of $2.7 billion during the same period of 2010.
The group posted a profit of $401 million in 2011 Q3, a drop from 2010 Q3’s profit of $1.1 billion.
Its reinsurance business reported a combined ratio of 117.9% in the first nine months of 2011, marking a deterioration from the 102.1% COR reported during the same period of 2010.
When comparing quarter-over-quarter, the reinsurance property and casualty unit of Munich Re saw improvement, with 89% reported in 2011 Q3 and 93.8% in 2010 Q3.
“Following a first half-year heavily burdened by natural catastrophes in particular, the third quarter of 2011 was less marked by major losses,” said Dr. Nikolaus von Bomhard, chairman of the board of management of Munich Reinsurance Company.
“Besides the natural catastrophe losses affecting our business field of reinsurance, which are far above the average to be expected, the financial crisis remains the greatest challenge for us as a financial services provider.”