Munich Re posts solid results for mid-year

A strong second quarter pushed Munich Re’s consolidated profit to  €1.59 billion ($1.9 billion) for the six months to June 30, putting the company well on the way to surpassing its full-year target of €2.5 billion ($2.9 billion).

Consolidated profit in the second quarter was €812 million ($987 million), up from €738 million ($897 million) from the same period last year.

Compared with year-end 2011, equity rose by 8.8% to €25.4 billion ($30.9 billion). The annualized return on risk-adjusted capital (RORAC) amounted to 13.1% and return on equity (RoE) to the same figure. Gross premiums written were up 3.8% to €25.9 billion ($31.5 billion), with €12.6 billion ($15.3 billion) attributable to the second quarter, notes a statement from Munich Re.

“Munich Re’s Group performance was satisfying,” says the company’s CEO Nikolaus von Bomhard. “Our conservative approach to business is proving robust in these uncertain times.”

Overall, Munich Re reported the challenge of still very low interest rate levels is far greater than that of the volatility of the financial markets or the worsened global economy.

“We began spreading our investments very broadly years ago,” notes von Bomhard. “This approach, in combination with our consistent risk management, helps us to be prepared even for greatly varying scenarios.”