April 23, 2018 / 6:58 PM / a year ago

Munich Re says expects first-quarter profit of over 800 million euros

FILE PHOTO: The company logo of German reinsurer Munich Re is seen before the company's annual news conference in Munich, Germany, March 16, 2016. REUTERS/Michaela Rehle//File Photo

BERLIN (Reuters) - Munich Re (MUVGn.DE), the world’s largest reinsurer, said it was expecting a consolidated first-quarter profit of over 800 million euros (700.4 million pounds) after a lower than expected pay out for major losses.

The update comes ahead of the company’s annual general meeting on Wednesday.

Munich Re has posted declines in profit over the past five years, but is counting on a reversal in fortune in 2018.

It stuck to its guidance for 2018 consolidated net profit of 2.1-2.5 billion euros.

“We’ve reached a turnaround and our profit target for 2018 is higher than last year,” CEO Joachim Wenning said in an interview with Reuters published earlier on Monday.

Last year, Munich Re eked out a small profit after a spate of hurricanes and other natural catastrophes in North America prompted record claims to insurers across the industry.

Net profit of over 800 million euros in the quarter would be a large gain on the 557 million euros for the first quarter of last year.

“The main reason for this good result is low major-loss expenditure in reinsurance,” Munich Re said in a statement late on Monday.

Reporting by Victoria Bryan; editing by David Evans

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