Munich Re reports record profit in 2006 of EUR3.5 billion.

Munich Re has reported posting a record profit totalling EUR3.5 billion [Cdn$5.4 billion].The company also reported reducing its combined ratios in reinsurance (92.6%) and primary insurance (90.8%) to new record lows.”A record profit for the third time in a row that shows the powerful effect of our clear profit focus,” said Nikolaus von Bomhard, chairman of the board of management, when presenting the results. “We are adhering to this strategy, while selectively and systematically exploiting our group’s growth potential.”For 2007, von Bomhard said the company is aiming at a profit of EUR2.8-3.2 billion [Cdn$4.3-4.9 billion] for the Munich Re Group around 10% more than the range of EUR2.62.8 billion [Cdn$4.02-4.3 billion] set a year ago for 2006.Spared the major weather-related catastrophes of 2004-05, Munich Re almost doubled its reinsurance profit to EUR2.7billion. The outstanding result in reinsurance business benefited from risk-adequate prices, terms and conditions, the company announced. Reinsurance contributed EUR2.7 billion [Cdn$4.2 billion] to the group profit, 92.9% more than in the previous year.