(Bloomberg) – Munich Re, the world's second-biggest reinsurer, expects profit to decline this year as falling prices for its products and low interest rates weigh on investment earnings.

The company plans to repurchase 1 billion euros ($1.1 billion) of stock before its 2017 shareholder meeting, Munich Re said in a statement Wednesday. That follows a repurchase of the same size that ends in April. Net income for this year is expected to decline to between 2.3 billion euros and 2.9 billion euros, compared with 3.1 billion euros reported for 2015, the Munich-based company said.

"On account of continuing low interest rates and intensive competition in reinsurance, this is an ambitious target," Chief Executive Officer Nikolaus von Bomhard said. "Especially because we cannot expect to see a repeat of the below-average expenditure for natural catastrophe claims that we had in 2015."

Continue Reading for Free

Register and gain access to:

  • Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.