Munich Re Quarterly Profit Off By 12%

For its property-casualty operations, Munich Re reported a 7.8 percent decrease in gross premiums written in the reinsurance sector for the fourth quarter and a 0.2 percent increase in the primary insurance sector. The combined ratio for the reinsurance sector improved to 91.7 in the quarter compared to 96.5 in 2006. For the primary insurance sector, the combined ratio jumped to 94.7 compared to 90.2 in the fourth quarter of 2006.

For the year, Munich Re reported an 11.9 percent increase in consolidated profit: $5.8 billion compared to $5.2 billion in 2006. Gross premiums written dropped slightly by 0.5 percent to $55.3 billion, and investment results climbed 3.3 percent over 2006 results to $13.8 billion.

In a statement, Nikolaus von Bomhard, chairman of the board of management for Munich Re, said: "We have reaped the rewards of our rigorous approach in integrated risk management and our healthy skepticism toward what are often poorly rewarded credit risks."

Looking to 2008, Mr. von Bomhard predicted a "more difficult environment" for insurance and capital markets, but he said he expected a consolidated result in the range of $4.4-to-$5 billion. "With our very solid position, we have again set ourselves a high profit target, even though a more difficult environment is to be expected in the insurance and capital markets this year," said Mr. von Bomhard.