Munich Re’s profits rise

Profits for German reinsurer Munich Reinsurance Co. spiked this year, increasing 41.7% from the first quarter in 2005 to reach US$1.70 billion (979 million ) in the same period of 2006.
This profit, according to Munich Re, is a result of a streamlined and focused profit orientation and was due in large part to its “strict profit orientation and careful underwriting.
Munich Re’s primary insurance company, ERGO, also saw profitable results which added to the Company’s overall performance.
ERGO, representing around 94% of the premium volume of primary insurance written by Munich Re, saw profits of US$252.2 million (145 million) for Q1 2006, which represents an increase from the US$121.8 million (70 million) recorded last year.
However, gross written premiums for Q1 2006 US$17.46 billion (10.04 billion), which represents a 1.2% decrease from the recorded numbers in 2005.
The group’s nonlife reinsurance unit recorded a combined ratio of 92.2%, which is a slight decrease from the 96.5% recorded in the same period last year.