Germany's Munich Re on Monday reported a 2.2% increase in second-quarter net profit, beating expectations as a lower tax rate offset lower premiums, lower capital investment gains and higher claims.
The company, the world's second largest reinsurer by gross premiums after Swiss Reinsurance Co., also raised its full-year target for after-tax profit to between 3.5 billion euros ($4.8 billion) and 3.8 billion euros, from between 3 billion euros and 3.2 billion euros.
Reinsurance companies sell backup coverage to other insurers, spreading risk so the system can handle huge losses from major disasters.
Second-quarter net profit rose to 1.14 billion euros from a revised 1.12 billion euros in the year-ago quarter. Analysts polled by Dow Jones Newswires had forecast an average decline to 977 million euros.
Revenues were down 1.3% to 8.91 billion euros from 9.03 billion euros, while net investment income, which reflects the net capital gains the company realized in the quarter, fell 7.1% to 2.49 billion euros from 2.67 billion euros.