Munich Re increased its stock dividend by EUR1 ($1.59) to EUR5.50 ($8.75) per share based on its record EUR3.9 billion profit for 2007.
The German-based insurer said the distribution will amount to a total of EUR1.12 billion ($1.78 billion) to shareholders, a quarter of its consolidated profit.
"The profits of recent years illustrate that we are on the right track. And these profits benefit our shareholders through dividends and share buybacks," said Nikolaus von Bomhard, Munich Re's chief executive officer, in a statement.
"The consolidated result is the sum of the very good results we recorded in both primary insurance and reinsurance. We aim to be the very best. Where we have not yet achieved the best mark, we are determined to swiftly close the gap," he added.
The company said it aims to make a profit between EUR3 billion ($4.78 billion) and EUR3.4 billion ($5.41 billion) for 2008 "despite the increased volatility of the capital markets." The figure is EUR200 million ($318 million) higher than its 2007 forecast, the company added. The difference in results, Munich Re said, is due to one-off income tax-effects and real-estate sales.
The company did not say when the payments would be made to shareholders.
Munich Re said it plans to increase its earnings per share to EUR18 ($29) by 2010.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.