MUNICH RE SMASHES Q1 PROFIT EXPECTATIONS

Munich Re’s first-quarter profit will be way ahead of analysts’ expectations despite higher than average major losses. Net profit at the German reinsurance giant will come in at around €600m ($722.9m), up from €221m for the same period a year ago and ahead of analysts’ consensus expectation of €466m. The preliminary result came on the back of “good operational development overall” and a “very good performance” from German insurance arm Ergo. Major loss expenditure in property/casualty reinsurance was “higher than average”, primarily owing to an unusually severe cold spell in the US, in particular in the state of Texas, Munich Re said. Loss related to Covid-19 were in line with expectations. Munich Re will report the definitive figures on May 6.