Munich Re generates profit of €728m in second quarter

Munich Re has generated profit of €728m in second quarter. Announcing the quarterly result Joachim Wenning, Chairman of the Board of Management said  “With a half-year profit of €1.6bn, we are most certainly on track to reach our profit target of €2.1–2.5bn for the year as a whole. We also made progress with the implementation of our strategy: Munich Re is becoming more profitable, more digital and leaner.” The operating result was down year on year to €997m (1,156m). The other non-operating result improved to –€151m (–264m); of which €41m (–162m) was attributable to the currency translation result. Taxes on income totalled €68m (108m). At €26,899m, equity was lower than at the beginning of the year (28,198m), since the good half-year result and positive currency translation effects were more than offset by the dividend payment, share buy-backs and lower unrealised gains due to developments in the capital markets. Gross premiums written declined by 5.2% to €11,188m (11,800m). If exchange rates had remained the same, premium volume would have fallen by 1.2% year on year. In Q2, the annualised return on risk-adjusted capital (RORAC) amounted to 11.6%, and the return on overall equity (RoE) totalled 10.8%. In the first six months of 2018, the annualised return on risk-adjusted capital (RORAC) amounted to 12.4%, and the return on overall equity (RoE) totalled 11.3%. At approx. 250%, the solvency ratio at the end of Q2 was higher than at the beginning of the year (244%).