Reinsurer Munich Re says a series of severe earthquakes and other natural catastrophes combined with the European debt crisis has sent its profits plunging in 2011.
The reinsurer, which writes backup insurance for primary insurers, said Thursday it still managed to post a profit of (euro) 710 million ($935 million), but that was down from (euro) 2.43 billion in 2010.
Fourth quarter profit came in at (euro) 630 million, up from (euro) 480 million the year before, and the company said it was on track for a “significantly improved technical result for 2012.”
Chief financial officer Joerg Schneider says “we have never experienced a year like 2011 before – extreme burdens from natural catastrophes combined with the financial crisis, which flared up again after the slight recovery in 2009 and 2010.”
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