German reinsurance giant Munich Re affirmed its annual profit forecast on Wednesday after posting strong earnings figures for the second quarter (Q2) of 2018.
According to chief executive officer (CEO) Joachim Wenning, Munich Re would achieve net profits of between 2.1 and 2.5 billion euros in 2018 as forecast earlier if the second half of the year developed normally.
The company has so far recorded net profits of just under 1.6 billion euros (1.9 billion U.S. dollars) between January and June. Munich Re has already fared far better at this point than it did in the course of last year when a series of devastating hurricanes led to a slump in annual net profits to just 400 million euros.
In Q2, net profits held steady at 728 million euros in spite of quarterly pay-outs for major damages doubling to 605 million euros, the biggest of which for construction damages at a water plant in Colombia. Munich Re succeeded in offsetting these costs with strong performances from its life insurance and health re-insurance divisions.
Gross revenue during the first six months of 2018 was measured at 24.3 billion euros, marking a 1.7 percent decline over the same period last year. Munich Re blamed the fall on sales to adverse accounting effects created by the recent strengthening of the euro against the dollar. For the entirety of 2018, the Munich-based company expects to record gross revenue of between 46 and 49 billion euros.
Munich Re was first founded in 1880 and is publicly-listed on Germany's top 30 DAX. In 2017, the re-insurance company recorded 49.1 billion euros in gross revenue and employed more than 42,000 staff across the world.