Munich Re: warns on profits after hurricanes Harvey and Irma
(CercleFinance.com) - Munich Re could miss its profit guidance for 2017 given the heavy losses expected from hurricanes Harvey and Irma, the German reinsurer said on Thursday.
While unable to quantify these costs at the moment, the group said figures for the third quarter of 2017 will probably show a loss, as both events are expected to result in high insured losses.
For the whole year, losses from Harvey and Irma could mean that Munich Re might miss its previous earnings guidance of between 2 billion and 2.4 billion euros, depending on how the business performs until the end of 2017, it added.
In a statement, the company ensures that even after such severe natural catastrophes, it has a sufficiently solid capital base to still be able to offer full reinsurance capacity to clients.
Even so, Munich Re shares were still up 0.2% at 176.2 euros in Frankfurt after the announcement was made.
Copyright (c) 2017 CercleFinance.com. All rights reserved.
While unable to quantify these costs at the moment, the group said figures for the third quarter of 2017 will probably show a loss, as both events are expected to result in high insured losses.
For the whole year, losses from Harvey and Irma could mean that Munich Re might miss its previous earnings guidance of between 2 billion and 2.4 billion euros, depending on how the business performs until the end of 2017, it added.
In a statement, the company ensures that even after such severe natural catastrophes, it has a sufficiently solid capital base to still be able to offer full reinsurance capacity to clients.
Even so, Munich Re shares were still up 0.2% at 176.2 euros in Frankfurt after the announcement was made.
Copyright (c) 2017 CercleFinance.com. All rights reserved.