Frankfurt: German reinsurance giant Munich Re said on Wednesday it expects net profit to decline this year as a result of record low interest rates.
Munich Re said in statement it projects a net profit of €2.5 billion to €3 billion (Dh9.89 billion to Dh11.86 billion) this year, after already falling by 4.6 per cent to €3.2 billion last year.
“The comparatively wide spread of the result guidance is due to the unchanged high level of political and economic uncertainty,” said chief executive Nikolaus von Bomhard.
“The flood of liquidity in important markets means that Munich Re must expect declining returns on its investments again in 2015,” he said.
Insurers are suffering from the current record low interest rates in Europe, as well as fierce competition.
