Munich Re confirms 2018 target after profit slips

Market trading boards are seen at the Australian Securities Exchange in Sydney, Friday, February 9, 2018. ( AAP Image/Ben Rushton) NO ARCHIVING

Munich Re AG (MUV2.XE) said Wednesday that its second-quarter net profit and gross premiums written fell on year but confirmed its 2018 profit target.

Net profit for the period fell to 724 million euros ($838.6 million) compared with EUR729 million a year earlier, the reinsurance giant said.

Gross premiums written stood at EUR11.19 billion, down from EUR11.80 billion a year earlier.

The company confirmed its 2018 profit guidance of between EUR2.1 billion and EUR2.5 billion.

Munich Re still expects to post gross premiums written of between EUR46 billion and EUR49 billion for 2018.

"Munich Re has lowered its projection for ERGO International’s combined ratio for the full year by one percentage point to 96%," the company said referring to a key industry metric that compares costs and claims with premium income.

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