Reinsurance company Munich Re shows a 31% drop in Q2 net profit

German reinsurance giant Munich RE said on Tuesday it had a 31% drop in second-quarter net profit but will keep its 2022 profit target.

Photo by CHRISTOF STACHE/AFP via Getty Images

Munich Re said on Tuesday it had a 31% drop in second-quarter net profit as it took write-downs on equity investment losses, but it reaffirmed its 2022 profit target.

The world’s largest reinsurer nevertheless warned that its forecasts and targets faced “significant uncertainty” due to the fragile economy, volatile markets, the pandemic and the war in Ukraine.

Net profit for the quarter of 768 million euros ($782.90 million) compared with 1.106 billion euros a year ago and beat expectations of 719 million euros in profit.

Munich Re said it lowered its investment return target this year to above 2% from above 2.5%.

Its second-quarter investment profit halved to 971 million euros in the second quarter as it took net write-downs of 908 million euros, which it said was caused by falls in equity markets.

For the full year, it expects 3.3 billion euros in net profit.

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