By Mauro Orru
Munich Re AG said Thursday that its net profit for the second quarter of the year dropped as coronavirus-related losses took their toll.
The German reinsurer said second-quarter net profit fell to 579 million euros ($686.9 million) from EUR993 million for the second quarter of 2019.
The company absorbed around EUR700 million in coronavirus-related losses in the quarter.
Munich Re's operating result for the same period decreased to EUR755 million from EUR1.42 billion.
Munich Re said on July 20 that its quarterly net result amounted to around EUR600 million, thanks to good performance at its ERGO business and lower-than-average major losses, which exclude the impact from the coronavirus pandemic.
Gross premiums written rose to EUR12.83 billion from EUR11.80 billion.
Munich Re said it wouldn't issue profit guidance for 2020, citing uncertainty. However, it anticipates premium income of around EUR54 billion, up from previous forecasts of around EUR52 billion.
Write to Mauro Orru at email@example.com; @MauroOrru94