Munich Re’s July Renewals Rise, Q2 Net Profit Drops 42 Percent

August 6, 2020 by Tom Sims

German reinsurance group Munich Re posted a 42% decline in second-quarter net profit, with around 700 million euros ($832 million) in losses related to the coronavirus pandemic in the period.

The company, which had already announced preliminary earnings in July, said on Thursday that it would still not provide a full-year profit target given uncertainty around the virus.

The company also withdrew another target, its so-called technical result, due to losses stemming from a higher than expected mortality rate pushed up by COVID-19.

The company did slightly raise its outlook for premium income to 54 billion euros, from the previous 52 billion euros.

That followed an increase in premium volume in the July round of reinsurance renewals by 8.3%, with prices rising 2.8%.

($1 = 0.8415 euros)