Reinsurer warns that volatile markets, an economic slowdown and the fallout from the Ukraine war had increased uncertaintyMunich Re maintained its full-year earnings target of close to €3 billion. Photograph: Michaela Rehle/ReutersMunich Re’s profit slumped as the reinsurer took a hit of more than €900 million to its investment portfolio in a volatile quarter for financial markets.
While Munich Re confirmed its target for a profit of €3.3 billion this year, it warned that volatile markets, an economic slowdown and the financial fallout from Russia’s invasion of Ukraine had increased uncertainty. Munich Re had suspended new business in Russia and Belarus in March and said it would stop investments there.
“That is our current best estimate. We can only book numbers based on what we currently know, Munich Re chief financial officer Christoph Jurecka said in an interview on Bloomberg Television, referring to war costs. “It’s still in the early days with a lot of uncertainty around. Major-loss expenditures from natural catastrophes are posing another challenge, increasing by about a quarter. The costliest natural catastrophe for Munich Re in the quarter was the drought in South America, with losses amounting to about €130 million.
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