Turkey quake weighs on Munich Re profits
by AFP Staff Writers
Frankfurt, Germany (AFP) May 17, 2023

German reinsurance giant Munich Re reported a drop in first-quarter profits Wednesday after taking a hit from claims linked to the devastating earthquake that struck Turkey and Syria.

The group, which covers insurance firms against their risks, said net profit fell by 14 percent year-on-year to 1.27 billion euros ($1.4 billion).

Claims for major losses from natural catastrophes were "higher than expected" over the quarter, Munich Re's chief financial officer Christoph Jurecka said, totalling 870 million euros.

The powerful earthquake that hit Turkey and Syria in February and killed more than 50,000 people "was one of the most catastrophic we have seen in recent history", Jurecka said, costing Munich Re 600 million euros alone.

Revenues from insurance contracts climbed more than seven percent to 14.2 billion euros year-on-year, boosted by higher prices and new business in Asia and Latin America.

The group said it was confident it would still meet its target of posting a full-year net profit of four billion euros in 2023.

It warned, however, that its forecast faced "considerable uncertainty" because of the war in Ukraine, market volatility and "fragile macroeconomic developments".

mfp/fec/lth

MUENCHENER RUECKVERSICHERUNG

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