MUNICH (Reuters) – The world's biggest reinsurer, Munich Re, on Tuesday reported a 35 percent fall in second-quarter net profit due to more than 600 million euros ($794 million) in damage claims that included the heavy floods in central Europe in June.
This contrasted with the relatively low claims for Munich Re and the European reinsurance sector as a whole in the first quarter.
“Unlike the first quarter of 2013, the second quarter was significantly affected by major losses,” Chief Executive Nikolaus von Bomhard said in a statement. He said this showed the need to be careful in basing long-term result estimates on the basis of just one quarter.
The business environment was also tough because of low interest rates, which crimp income fromMunich Re's investments, he said.
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