November 7, 2019 / 7:26 AM / 6 days ago

UPDATE 1-Munich Re confirms it will beat 2019 profit forecast after strong Q3

* Q3 profit higher than preliminary result

* Expects to beat full-year target despite costly storms (Updates with details)

FRANKFURT, Nov 7 (Reuters) - Munich Re on Thursday confirmed that it would beat its full-year profit target in 2019 after a strong third quarter and despite claims for hurricanes and typhoons.

Profit in the quarter rose 79% from a year earlier to 865 million euros ($957 million).

That is better than profit of around 850 million euros that the reinsurer had flagged in preliminary earnings last month, when it also first said it would likely exceed this year’s profit target.

“We now expect to surpass our initial profit and revenue targets overall for 2019,” Chief Financial Officer Christoph Jurecka said.

The reinsurer’s profit target had been around 2.5 billion euros for the full year.

Munich Re pointed to large natural catastrophes - Hurricane Dorian and Typhoon Faxai - as among the major costs for claims this year. Typhoon Hagibis, which struck Japan in October and was the worst storm there in decades, will cost even more, although it will fall on the fourth quarter, the company said.

Munich Re’s combined ratio in its property and casualty division, a key measure of profitability, was 104.7% in the third quarter, worse than the 100.7% a year earlier. Readings below 100% indicate profitability.

$1 = 0.9042 euros Reporting by Tom Sims; Editing by Michelle Martin and Tom Hogue

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