Munich Re sees 2010 div similar to 2009 -paper

FRANKFURT Dec 18 (Reuters) - Munich Re (MUVGn.DE), the world's biggest reinsurer, does not expect to pay a lower dividend for 2010 than it did on 2009 earnings, its chief financial officer was quoted as saying.

The company would stick to its long-term dividend policy, Joerg Schneider added in an interview published in Boersen-Zeitung on Saturday,.

"We wouldn't like to go below the 5.75 euros per share (paid for 2009) as a dividend for 2010. And there is no reason to do so," he said.

Schneider said the company would stick to its policy of paying out at least a quarter of its profit to shareholders, adding that the latest payout ratio, at 41 percent, was far above that level.

For 2010, the company said it expects net profit of about 2.4 billion euros ($3.19 billion). [ID:nLDE6A71GE]

A long-term scenario of low interest rates, however, would harm the company's profit potential, Schneider said, adding that no positive development was in sight on that front. The European Central Bank earlier this month kept its interest rates on hold at a record low of 1 percent. [ID:nFLA2NE6FO] "Despite encouraging signals from the economy, we expect no significant rise of inflation and therefore no strong impulse for interest rates for next year and beyond," Schneider said.

Regarding major U.S. shareholder Warren Buffett -- who raised his stake in Munich Re to above 10 percent in October, planning to further expand the holding -- Schneider said: "Warren Buffett said that his shareholding is a financial instrument ...We are glad about long term-oriented investors." [IDnLDE69I0JE]]

(Reporting by Christoph Steitz; Editing by John Stonestreet)