Munich Re says profits quadrupled in 2012

FRANKFURT: Munich Re, the world's biggest reinsurer, said Tuesday its bottom-line profit increased by more than four fold in 2012 on lower losses from natural catastrophes.

Munich Re said in a statement it booked net profit of 3.2 billion euros ($4.3 billion) last year, compared with 0.71 billion euros a year earlier.

Operating profit also more than quadrupled, soaring to 5.4 billion euros in 2012 from 1.2 billion euros in 2011 and gross premium income was up 5.1 percent at 52.0 billion euros, the statement said.

"This very pleasing profit is founded on our rigorous risk management, disciplined underwriting policy and the realisation of profitable business opportunities," said chief financial officer Joerg Schneider.

"Our core business in insurance and reinsurance is healthy, while the claims burden from major losses was slightly below average. We also achieved a good investment result," Schneider said.

"2012 thus brought good progress," he continued and added that the dividend would be "substantially increased" to 7.0 euros per share for 2012 from 6.25 euros a year earlier.