$MUV2 (-0,44 %) (Reuters) - The devastating forest fires in and around Los Angeles are costing Munich Re billions. The world's largest reinsurer put the total loss at around 1.1 billion euros on Tuesday, of which 800 million was attributable to the reinsurance division. As a result, net profit in the first quarter almost halved to 1.09 (previous year: 2.12) billion euros, as Munich Re announced. Analysts had expected an average of 1.11 billion euros.
Nevertheless, the Group is sticking to its expectation that profit will rise to around six billion euros in 2025 - "not least thanks to continued good market conditions and the high quality of our portfolio", said CFO Christoph Jurecka. However, prices fell by an average of 2.5 percent in the latest round of renewals in April, in which contracts are renegotiated with primary insurers and brokers.
Nevertheless, Munich Re wrote 6.1 percent more business.
