In the second quarter of 2013, Munich Re achieved a consolidated profit of €543m (same period last year: €812m). Performance in primary insurance and reinsurance was good as a whole, although the second quarter was marked by claims burdens of €230m from the floods in Germany and neighbouring countries and by above-average major losses. In the first half-year, the Group achieved a profit of €1.5bn.
CEO Nikolaus von Bomhard said: "Unlike the first quarter of 2013, the second quarter was significantly affected by major losses. The business environment remains difficult, owing to the low interest rates. Against that background, the half-year result is very satisfactory." With regard to Munich Re's result target for 2013 as whole, von Bomhard emphasised: "With this half-year profit, we are well on track to achieving our target of close to €3bn." According to the CEO, the very different claims experience in the first two quarters again showed "how careful one has to be in basing long-term result estimates on the basis of just one quarter."
Summary of the figures for the first six months
From January to June, the Group recorded an operating result of €1,982m (2,304m). In the second quarter, it posted an operating result of €594m. There was tax income of €165m (same quarter last year: tax expenditure of €164m), mainly due to a reduction of provisions for prior years necessary for accounting reasons. Negative impacts came from interest payments of €113m on back tax payments for prior years, and currency translation effects of -€92m (previous quarter: +€153m). Owing to the increase in interest rates, the on- and off-balance-sheet valuation reserves decreased to a still-high level of €16.7bn; equity declined by 6.5% compared with the year-end figure, falling to €25.7bn. The annualised return on risk-adjusted capital (RORAC) in the first six months amounted to 11.1% and the return on equity (RoE) to 11.2%. Gross premiums written were up 1.0% to €26.1bn (25.8bn), with €12.8bn (12.6bn) attributable to the second quarter. If exchange rates had remained the same, premium volume would have increased by 2.1% compared with the same period last year.