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Munich Re says profits quadrupled in 2012

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FRANKFURT, Feb 5 AFP

February 05 2013, 6:40PM

Munich Re, the world's biggest reinsurer, says its profit increased more than four fold in 2012 on lower losses from natural catastrophes.

Munich Re said in a statement on Tuesday it booked net profit of 3.2 billion euros ($A4.18 billion) in 2012, compared with 0.71 billion euros a year earlier.

Operating profit also more than quadrupled, soaring to 5.4 billion euros in 2012 from 1.2 billion euros in 2011 and gross premium income was up 5.1 per cent at 52 billion euros, the statement said.

"This very pleasing profit is founded on our rigorous risk management, disciplined underwriting policy and the realisation of profitable business opportunities," said chief financial officer Joerg Schneider.

"Our core business in insurance and reinsurance is healthy, while the claims burden from major losses was slightly below average. We also achieved a good investment result," Schneider said.

He said the dividend would be "substantially increased" to seven euros a share for 2012 from 6.25 euros a year earlier.