Munich Re cautious on fresh dividend rise, buybacks

FRANKFURT, March 12 Tue Mar 12, 2013 7:05am EDT

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FRANKFURT, March 12 (Reuters) - Munich Re's chief executive urged caution on prospects for further dividend increases and share buybacks, while also not ruling them out.

"Our environment is not easy - I've already mentioned low interest rates - and that's why we tend to be cautious over our capital position even as all sorts of dreams have been awakened not only about dividends but also a buyback of shares," Chief Executive Nikolaus von Bomhard told a news conference.

The world's biggest reinsurer raised its dividend to 7 euros per share for 2012, exceeding consensus for 6.76 euros.

Continuity in the dividend was important and it would take an extreme event to prompt the reinsurer to lower it, von Bomhard said. (Reporting by Jonathan Gould; Editing by Maria Sheahan)

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