MUNICH RE SUFFERS DROP IN PROFIT AFTER CATASTROPHE CLAIMS

Munich Re has suffered a fall in its annual profit after natural catastrophes in Europe and the Asia-Pacific region produced the highest damage claims in the firm’s history. The reinsurer reported that its group 1999 net profit fell to 1.1bn euros from 1.2bn euros, despite rising investment returns. Gross premium income for the group rose 7.5% last year to 27.4bn euros, in what Munich Re described as a sign of “very satisfying growth” in core operations. The reinsurer noted that “alongside the December hurricanes Lothar and Martin in Europe, there were, among other things, the Sydney hailstorm, typhoon Bart in Japan and earthquakes in Turkey, Greece and Taiwan”. Munich Re predicted a “significant rise in profits” this year.