News – 01-JUN-06

Munich Reinsurance Co.’s profits spiked this year, increasing 41.7% over 2005 Q1 to reach US$1.70 billion in 2006 Q1.

This profit, according to Munich Re, is a result of a streamlined and focused profit orientation; it was due in large part to its “strict profit orientation and careful underwriting,” the company said in a release.

Munich Re’s primary insurance company, ERGO, also saw profitable results, adding to the company’s overall performance. ERGO, representing about 94% of the premium volume of primary insurance written by Munich Re, saw profits of US$252.2 million in 2006 Q1, representing an increase from the US$121.8 million recorded last year.

Gross written premiums for 2006 Q1 were US$17.46 billion, however, representing a 1.2% decrease from the recorded numbers in 2005.

The group’s non-life reinsurance unit recorded a combined ratio of 92.2% – a slight decrease from the 96.5% recorded in the same period last year.