Munich Re forecasts lower profits and competitive pressure
Thursday, 03 17 2016, Category: Insurance and Reinsurance, Country: World
Global reinsurance firm Munich Re said yesterday that it does not expect to repeat the profits it made in 2015 this year, noting an expected continuation of competitive pressures, the probability of higher catastrophe claims and as lower returns factor into overall profitability.
Munich Re’s returns on capital and equity declined in 2015, as pressure on pricing in reinsurance markets and high levels of competition squeezed its key performance metrics.
In the reinsurers balance sheet results announcement this morning it announced a profit target of €2.3 billion to €2.8 billion for 2016, down from the €3.1 billion achieved in 2015.