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Feb. 25, 2021, 2:16 a.m. EST

Munich Re profit weighed by coronavirus

By Giulia Petroni

Munich Re AG said Thursday that profit fell in the fourth quarter of last year as its business suffered high losses due to a hit from the coronavirus pandemic.

The German reinsurance company reported a net profit of 212 million euros ($257.6 million) for the quarter, down from EUR217 million a year earlier.

For the full year, net profit fell to EUR2.11 billion from EUR2.71 billion in 2019, while gross premiums written went up to EUR54.89 billion, from EUR51.46 billion the previous year.

The company said it will propose a dividend of EUR9.80 a share for 2020, stable on year. It won't launch a new share buyback program at this time, it said.

Looking ahead, Munich Re targets a profit of EUR2.8 billion and gross premium income of about EUR55 billion in 2021, and expects Covid-19-related effects to be lower than in the previous year.

Write to Giulia Petroni at giulia.petroni@wsj.com

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