German reinsurance group Munich Re said on Thursday that net profit declined 55% in 2020 as it battled with fallout related to the coronavirus pandemic.
Net profit of 1.211 billion euros ($1.47 billion) compares with 2.707 billion euros a year earlier, and is slightly below a consensus forecast of 1.261 billion euros.
Major losses in 2020 were primarily related to pandemic claims and totalled 4.689 billion euros, the highest level since 2011, when the firm had to make payouts for a tsunami in Japan, major earthquakes in New Zealand and the explosion of the Deepwater Horizon oil rig.
“In spite of the tremendous challenges posed by COVID-19, Munich Re closed out 2020 with a clear profit,” Chief Executive Joachim Wenning said.
Munich Re and its competitors have faced large claims from the pandemic, such as those for cancelled events, as well as losses from hurricanes and wildfires in the United States.
The virus uncertainty prompted the company to refrain from providing a full-year profit target.
Main Photo: EPA/SEBASTIAN WIDMANN