Munich Re net profit up sharply

(Reuters) — German reinsurer Munich Re on Thursday posted a better-than-expected 41% rise in net profit in the second quarter and said it may exceed its full-year guidance.

The company, the world’s largest reinsurer, pointed to strength in its life and health reinsurance segment, which helped balance out losses due to claims from flooding in Germany in the quarter.

Second-quarter net profit of €1.623 billion ($1.77 billion) compared with €1.154 billion in the year-earlier period. Analysts had expected net profit of €1.438 billion.

Munich Re is optimistic of reaching its net profit target of €5 billion for the full year.

“Our impressive half-year result does make it more likely that we can achieve or even outperform our full-year guidance,” CEO Joachim Wenning said.