German reinsurance group Munich Re said on Tuesday it would meet its 2021 profit goal as it raised its forecast for gross premiums and predicted higher pandemic-related losses than previously anticipated.
Munich Re made the announcements on the back of its second-quarter earnings release that underscored it was rebounding from the fallout of last year’s coronavirus pandemic outbreak.
Profit in the quarter rose 91% to 1.106 billion euros ($1.30 billion) from 579 million euros [$680.4 million], in line with preliminary earnings published last month.
Read more: Reinsurers Show Strong Profits During 2nd Half, Rebounding from 2020’s Challenges
Munich Re said it was raising its loss expectations for COVID-19 for its life and reinsurance business this year to 400 million euros [$470 million] from around 200 million euros [$235 million]. For reinsurance, it is raising its forecast on such losses to around 700 million euros [$822.6 million] from around 500 million [$587.5 million].
Flooding centered in Germany from the Bernd storm will cost the company a “mid-three-digit million euro” figure.
The outlook for revenues is brighter, with 2021 gross premiums now forecast at 58 billion euros [$68.2 billion], up by more than 1 billion euros [$1.2 billion] from previous expectations, Munich Re said.
It aims for profit of 2.8 billion euros [$3.3 billion] this year.
($1 = 0.8519 euros) (Reporting by Tom Sims; editing by Riham Alkousaa and Tomasz Janowski)
Topics Trends Profit Loss COVID-19
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