Munich Re results, better than expected

The reinsurer Munich Re is expecting a profit worth 3 billion EUR (3.8 billion USD) in 2012. Previous estimates had forecast only 2.5 billion EUR (3.23 billion USD). Premiums collected during the year were up by 8.1% at 21.2 billion EUR (27.4 billion USD). Nearly 35% of the turnover was written in the third quarter. The downward revision of Hurricane Sandy’s bill and, more generally, the low loss ratio reported in 2012 enable the German reinsurer to be optimistic about the results of current year. In contrast, Ergo, Munich Re’s insurance subsidiary, has sustained a 3.6% decrease in revenues.