NU Online News Service, March 10, 3:49 p.m. EST
Munich Re said profit for 2009 exceeded $3 billion and it expects 2010 to be just as profitable, despite catastrophe losses from the Chile earthquake and a huge winter storm in Europe.
The Munich, Germany-based company released its official results for 2009 of net income of EUR2.56 billion ($3.49 billion at the current exchange rate) compared to EUR1.58 billion ($1.58 billion) in 2008. The company said those results matched preliminary figures released in early February.
In response, the company raised its dividend to EUR5.75 ($7.84) a share from EUR5.50 (7.50), adding that it expects a profit of over EUR2 billion ($2.73 billion) for 2010.
"We have brought the financial year 2009 to a successful close," said Nikolaus von Bomhard in a statement. "We were even able to surpass expectations and achieve our long-term return target despite the difficult environment."
He said the EUR2 billion target was still achievable despite the earthquake in Chile and Winter Storm Xynthia. The company added that it "anticipates an increase in results" for 2011.
Regarding its insurance results for 2009, property and casualty business combined ratio grew to 93.1 from 90.9 in 2008, while fourth-quarter dropped 3.8 points to 90. Premiums grew 1 percent from EUR5.1 billion ($6.96 billion) to EUR5.2 billion ($7.09 billion).
Total premium income across all lines grew 5.3 percent in 2009 to EUR19 billion ($26 billion) compared to EUR18 billion ($25 billion) the previous year.
On the reinsurance side, the combined ratio improved by 4.1 points to 95.3, with natural catastrophes accounting for 1.4 points.
The largest catastrophe loss for the company in 2009 came from the southeast Australia bush fires that cost the company EUR97 million ($132 million).
Claims from credit and surety reinsurance business amounted to EUR510 million ($696 million) for the year.
Gross premiums written rose 14 percent, or EUR3 billion ($4 billion), to EUR25 billion ($34 billion).
Life and health accounted for EUR10 billion ($14 billion), up EUR3 billion ($4 billion) from the year before, and p&c accounted for more than EUR15 billion ($20 billion), up EUR400 million ($546 million).
On its acquisition of Hartford Steam Boiler from American International Group, Munich Re said the unit contributed gross premium of EUR458 million ($625 million).
"In acquiring the HSB Group, we have not only gained a highly profitable enterprise, but have also substantially strengthened our position in the U.S.A.," said Torsten Jeworrek, board member and reinsurance CEO.
