Disasters, rocky markets put brakes on Munich Re

Berlin: Natural disasters and a tough market environment cut into profits at German reinsurance heavyweight Munich Re in the second quarter, the firm said in financial results on Tuesday.

Net profit fell to €974 million ($1.08 billion; Dh3.96 billion) in the second quarter, down 9 per cent compared with the same period in 2015. The reinsurer achieved “above average” net profits “despite higher natural catastrophe expenditure in the second quarter — arising from wildfires in Canada and earthquakes in Japan,” chief executive Nikolaus von Bomhard said in a statement.

“We are well on track to reach our annual target of €2.3 billion” in net profit despite the setbacks, von Bomhard said.