MUNICH, Nov 30 (Reuters) - German reinsurer Munich Re aims to stabilise its annual net profit at “2 billion euros plus” for the next few years as low interest rates and price pressure hold back growth, its Chief Executive Joachim Wenning said.
“We won’t see big jumps back to previous earnings levels,” he told journalists late on Wednesday, saying profit increases would rather happen gradually.
An improvement in prices for property and casualty reinsurance in the wake of a destructive series of natural catastrophes could speed up profit growth, he said.
Munich Re generated annual net profits of more than 3 billion euros for years through 2015, but in 2016 large losses from natural catastrophes, low interest rates and falling prices pushed its earnings down by 17 percent.
This year, it expects only a “small profit” after a series of hurricanes and an earthquake forced it to slash its earnings guidance.
$1 = 0.8425 euros Reporting by Alexander Huebner; Writing by Maria Sheahan; Editing by Arno Schuetze