Munich Re posts profits exceeding CDn$4.5 billion

Munich Re Group has posted profit exceeding 3.3 billion (roughly Cdn$4.5 billion) in the first nine months of 2007.
In the third quarter, we again posted excellent results, and are now harvesting the fruits of our strict profit orientation, John Schneider, CFO of Munich Re, said in a release.
In 2007 Q3, the company posted positive effects on earnings totalling around 400 million (roughly Cdn$544 million) from the German business tax reform 2008.
Gross premiums written remained stable at 28.1 billion, notwithstanding negative currency exchange effects due to the lower value of the U.S. dollar. Munich notes that had exchange rates remained unchanged, premium volume would have increased by 2.1% in the first nine months.
The Groups reinsurance business performed successfully in the first nine months of 2007, the company notes. Despite a 13% drop in operating result, reinsurance still contributed 2.8 billion to the organizations profit.
The strong performance was not only due to good investment results, but underwriting business, as well, the company reports.
The combined ration was 98% in the first nine months of 2007.