FRANKFURT (Reuters) - Munich Re MUVGn.DE on Tuesday withdrew its profit guidance for the year, blaming heavy insurance claims triggered by the cancellation of large events which were banned as a way to stop the spread of the coronavirus.
Munich Re said claims made to its property-casualty reinsurance segment had caused it to anticipate profits in the low three-digit million euro range for the first three months of 2020.
Last year, the reinsurer posted first-quarter profits of 633 million euros.
As a result the company’s annual guidance will suffer.
“Munich Re will not attain its profit guidance of 2.8 billion euros ($3.08 billion) for 2020 as a whole,” the reinsurer said in a statement on Tuesday.
A share buyback programme slated for the 2020/2021 period will be discontinued until further notice, it said.
Even after the impact of capital-market and loss developments, Munich Re’s solvency ratio is still comfortably within the communicated optimal range of 175% to 220% of the requirement and the company plans to pay a dividend of 9.80 euros per share.
($1 = 0.9104 euros)
Reporting by Edward Taylor; Editing by Arno Schuetze and Ken Ferris
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