Munich Re reports 2005 profit of US$3.34 billion

Munich Reinsurance Company has reported a 2.7 billion (US$3.34 billion) profit for 2005, paving the way for a record dividend payout of 707 million (US$875.3 million).”Given its outstanding result for the business year 2005, Munich Re is paying out a record dividend amount totalling 707 million,” Munich Re board chairman Nikolaus von Bomhard announced in his report to shareholders. “We bettered the record profit we had set in 2004, achieving another exceptionally good result in Munich Re’s 125th anniversary year.”With a profit of over 2.7 billion for 2005, the group met its return target. Although the high hurricane losses put us to the test, thanks to our broad diversification with significant operations in primary insurance and reinsurance we were able to more than just compensate for the burdens.”The company noted the renewal of a large portion of its reinsurance treaties in nonlife business paved the way for its success. In particular, treaty renewals in Japan and Korea at 1 April promoted the positive trend. At the Annual General Meeting, shareholders authorized the buy-back of shares up to a total amount of 10% of the share capital. The authorization granted last year would have expired in October 2006 and has thus been replaced.