Munich Re hails raised third quarter figures

Munich Re is expecting a higher consolidated result for 2010 than previously expected, boosted by significant improvements in the group's primary insurance and healthcare arms, according to its Q3 results.

Following a profit of €1,955m for the first nine months of 2010 (same period last year: €1,784m), Munich Re is now anticipating a consolidated profit of around €2.4bn for the year as a whole, compared with the guidance to date of over €2bn.

Jörg Schneider, Munich Re's chief financial officer, said: "Particularly the figures for the third quarter are very pleasing. The chances are therefore good that we can achieve a consolidated result of around €2.4bn. Besides normal claims development, determining factors will be share prices, interest rates and currencies."

In Munich Re's primary insurance arm the operating result for the first nine months of 2010 was up considerably on the previous year to €923m (from €500m), €296m of this in the third quarter.

In the life segment, total premium income rose by 6.6% to €6.0bn since January, the months of July to September accounting for €1.9bn. Premium in international business climbed by 8.4% in the first nine months to €1.5bn (€1.4bn).

The figures were aided by German new business being 28.5% higher than in the same period last year, thanks to the favourable development of single-premium business, where double-digit growth rates were achieved, especially in traditional annuity covers.

As from this year, Munich Re is reporting Munich Health as a separate segment for the first time. Munich Health covers the Group's health reinsurance business worldwide and its health primary insurance outside Germany.

Munich Health's business was previously disclosed in the segments "life and health reinsurance" and "health primary insurance". The figures for the previous year have been adjusted accordingly.

In the health insurance segment, premium income in the first nine months of 2010 increased by 6.1% to €4.2bn (from €3.9bn), of which €1.4bn (€1.3bn) was attributable to the third quarter. Third-quarter growth amounted to 7.2%.