Munich Re Eyes Return To Pre-pandemic Profit Levels In 2021

Munich Re eyes return to pre-pandemic profit levels in 2021

Frankfurt am Main, Dec 1 (UrduPoint / Pakistan Point News - 1st Dec, 2020 ) :German reinsurance giant Munich Re said Tuesday it was aiming to return to its pre-pandemic profit targets in 2021, expecting to take a far smaller hit from coronavirus-related claims next year.

"The burdens arising from Covid-19 are financially manageable for Munich Re," finance chief Christoph Jurecka said in a statement, despite the health crisis's "considerable impact".

The group said it should return to its pre-pandemic net profit level of 2.8 billion Euros ($3.35 billion) in 2021, as it expects coronavirus burdens to be "on a considerably smaller scale" than in 2020.

Compared with expected reinsurance losses of 3.4 billion euros arising from Covid-19 in 2020, virus-induced claims next year are forecast to amount to 500 million euros.

Without the coronavirus, Munich Re would have been able to achieve its original targets for 2020, Jurecka said.

The uncertainty caused by the pandemic led the Bavarian insurer to withdraw its profit forecasts for 2020 earlier this year.

The company added that it was aiming to top one billion euros in net profit this year.

Munich Re posted a third-quarter net profit of around 200 million euros, far down from 865 million euros the same quarter in 2019.

For the last quarter of the year, the period from October to December, the company said it expects a profit of around 200 million euros.

It cautioned however that its forecasts face "considerable uncertainty" owing to the fragile economic outlook and the "unclear future of the pandemic".