Munich Re Stays on Track for 2022 Profit Target, But Posts 31% Drop in 2Q Net Profit

Munich Re reported a 31% drop in net profit in the second quarter due to write-downs on stock investment losses on Tuesday, but it maintained its profit target for 2022.

Source: CNBC | Published on August 9, 2022

Munich Re Q1 profits 2024

Despite this, the world's largest reinsurer warned that its forecasts and targets were subject to "considerable uncertainty" due to the fragile economy, volatile markets, the pandemic, and the war in Ukraine.

The quarter's net profit of 768 million euros ($782.90 million) compares to 1.106 billion euros a year ago and exceeds expectations of 719 million euros.

Munich Re announced that it was lowering its target for its investment return this year to more than 2% from more than 2.5 percent.

Its second-quarter investment result fell by half to 971 million euros as a result of net writedowns of 908 million euros attributed to equity market declines.

The reinsurer expects a net profit of 3.3 billion euros for the entire year.