German reinsurance company Munich Re raised today its outlook for 2016 after its net profit for the third quarter jumped 30%.
Even though the insurance sector in general is having to cope with low interest rates, the group said profits over the July to September period climbed to 685 million euros, compared to 520 million euros a year earlier.
Munich Re’s operating profit were up even more, 75% to 1.01 billion euros year-on-year, with the group putting its strong performance down to a lower than average random incidence of major losses in reinsurance.
The most expensive natural catastrophe it had to deal with was the flooding in the US state of Louisiana in August, which will cost the firm 60 million euros, AFP reported.
Boosted by its third quarter, Munich Re said it now expected its full-year net profit to be much higher than the 2.3 billion euros forecast earlier.
The statement added that the improved outlook was already taking into account losses expected from the devastation wrought by deadly Hurricane Matthew, which battered the Caribbean and parts of the United States last month. (QNA)