Munich Re reports $3.3 billion profit, despite “substantial major losses”

Despite “substantial major losses,” Munich Re reported a consolidated profit of approximately $3.3 billion in 2010, a small decrease from the profit of $3.5 billion reported in 2009, the reinsurer reported.
Flooding in Queensland, Australia resulted in the reinsurer’s largest loss in 2010 Q4 – at $365 million. In total, Munich Re’s insured losses for 2010 are estimated to be between $4 billion and $5 billion.
“On the basis of current estimates, the claims burden accounted for in 2010 Q4 will be followed by claims expenses of a similar amount in 2011 Q1,” a Munich Re release says..
“Despite weighty major losses, which affected us at the end of the year, we are presenting a good result,” said Munich Re CFO Jorg Schneider.
The combined ratio in property casualty reinsurance was 100.5% in 2010, marking an increase from 95.3% in 2009.