Munich Re, third quarter results in sharp fall

Munich Re has posted its third quarter profit, down by 62% at 286 million EUR (388.9 million USD) in comparison with the same period of last year. The profit of the first nine months is set at 80 million EUR (108.7 million USD) versus 1.9 billion EUR (2.5 billion USD) in 2010. At the level of the group as a whole, the results have been particularly affected by the depreciation of sovereign debts in the third quarter, especially those of Greece up to 230 million EUR, 312 million USD (39% of its face value).
Munich Re is striving however to reduce its exposure to the European State bonds. The reduction of Italy’s exposure has been of 1.4 billion EUR (1.9 billion USD) but remains of 3.6 billion EUR (4.8 billion USD). Its reinsurance business has yielded a combined ratio of 117.9% over the first three quarters, a ratio poised to be downed to 113% over the entire financial year. The group thinks, however, it will post positive results in 2011.