Munich Re Confirms Guidance After Net Profit Beats Market Views

By Elena Vardon

Munich Re reported better-than-expected net profit for the second quarter and reiterated its outlook for the year.

The German reinsurer on Thursday posted net profit for the three months ended June 30 of 1.62 billion euros ($1.77 billion), up from EUR1.15 billion for the same period a year earlier and beating a consensus of estimates provided by the company of EUR1.44 billion.

The Bavarian group confirmed that it expects to make EUR5.0 billion in net profit for 2024 and that it will likely surpass this target. Analysts expect it to report EUR5.75 billion for the year.

"Encouraging July renewals plus the continued high yield on reinvestment add up to an optimistic outlook for the rest of 2024," Chair Joachim Wenning said.

Insurance contract revenue for the quarter rose 5.5% on year to EUR14.95 billion, in line with consensus of EUR14.9 billion, and the company still expects to report a EUR59 billion result for 2024.

Its investment result for the three-month period came in at EUR1.47 billion, missing expectations of EUR1.56 billion.

The group's solvency II ratio--a measure of capital strength--stood at 287% at the end of the period, compared with consensus expectations of 285%.

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

August 08, 2024 02:01 ET (06:01 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.