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Munich Re to hit 2017 profit target despite market conditions

26th April 2017 - Author: Luke Gallin

Reinsurance giant Munich Re said today that it’s on track to hit its profit target for 2017 of between €2 billion (US$2.18bn) and €2.4 billion (US$2.62bn) despite a continuation of low interest rates hindering investment returns and persistent, albeit slower reinsurance rate declines, reports Reuters.

During the German reinsurer’s annual general meeting Chief Executive Officer (CEO), Nikolaus von Bomhard, told shareholders; “A provisional estimate of business performance in the first three months of the year indicates that we are well on track to reach our profit target for 2017.”

Munich Re expects to release its first-quarter 2017 financial results on May 9th, 2017, and von Bomhard was eager to tell shareholders that low interest rates continue to hinder the firm’s regular investment income at a time when reinsurance prices continue to fall.

“At the moment, profitable growth is not at a level that can sufficiently compensate for falls in income. Against this backdrop, the stated profit guidance is certainly ambitious,” he said.

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