Munich Re: 31% drop in net profit in the second quarter, maintenance of the annual profit target

Munich Re said on Tuesday it posted a 31% drop in second-quarter net profit due to writedowns in financial holdings, but confirmed its profit target for 2022.

The world’s largest reinsurer nevertheless warned that its forecasts and targets faced „considerable uncertainty” due to the fragile economy, market volatility, the pandemic and the war in Ukraine.

The group reported a quarterly net profit of 768 million euros, against 1.11 billion euros a year ago; it higher than the forecasts which counted on 719 million euros.

Munich Re added that it is revising its investment return target for this year downwards, from more than 2.5% to more than 2%.

In the second quarter, the result of its investments fell by half, to 971 million euros, due to net write-downs of 908 million euros linked, according to the company, to the volatility of the stock markets.

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