Munich Re, the world’s largest reinsurer, reported that premium income for the the first quarter reached €4.3 billion ($3.7 billion), a solid 9 percent increase over last year’s figures. N
et profits reached € 805 million ($692.3 million).
The increase came mainly in the life reinsurance sector, helped by the consolidation of earnings from subsidiary Bayerische Vita. Munich Re confirmed its forecast of double digit earnings growth this year.
The enlarged stakes the company will obtain in HypoVereinsbank (HVB) and Germany’s second largest insurer, Ergo, when and if Allianz’ merger with Dresdner Bank is completed, will help. Munich already owns 62 percent of Ergo, and that would increase to 95 percent. It will also control over 25 percent of HVB.
Ergo also showed good results for the first quarter – a 9 percent growth in premium income to €3.6 billion ($ 3.09 billion), pushed by big increases from operations in Italy and eastern Europe. Premiums from outside Germany rose 56 percent to €683 million ($587.4 million). Ergo expects to top last year’s earnings of € 804 ($692 million).
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