In the second quarter of 2010, Munich Re achieved a consolidated profit of €709m (same period last year: €697m). The very pleasing investment result of €5.1bn for the first half-year made a particularly large contribution to the renewed high profit. Munich Re is maintaining its profit target of over €2bn for 2010. In primary insurance, the advertising campaign for the ERGO brand has begun in Germany.

Summing up the result for the first half-year, which was marked by exceptionally heavy burdens from major losses, CEO Nikolaus von Bomhard said: “While the technical result was again hit by large losses in the second quarter, we were able to post a very pleasing profit from investments.” At €5.1bn, the investment result for the first half-year showed a marked improvement (+42.8%) on the same period last year.

As well as the claims and result situation, von Bomhard also focused on the launch of ERGO’s advertising campaign: “Clients today acquire their information through a range of channels and make decisions on the basis of a variety of criteria. In this environment, a partnership-type relationship with clients and understanding of their needs are of great importance in the insurance industry. That is why the realignment of the ERGO brand now is so crucial.”

Von Bomhard confirmed the previous target for the year 2010 as a whole: “We aim to earn a profit of over €2bn in 2010 – that remains ambitious, but it is achievable.”

Summary of the figures for the first six months
From January to June, the Group recorded an operating result of €2,218m (2,109m), €1,448m of this in the second quarter. Compared with year-end 2009, equity rose by 6.6% to €23.7bn. The annualised return on risk-adjusted capital (RORAC) amounted to 13.2% and the return on equity (RoE) to 10.4%. Gross premiums written were up 9.3% to €22.6bn (20.7bn), with €11.0bn attributable to the second quarter. At unchanged exchange rates, premium volume would have increased by 5.8% in the first six months compared with the same period last year.

Primary insurance: ERGO launches advertising campaign for its brand
The operating result for the first six months of 2010 was up considerably on the previous year to a good €627m (276m), €376m of this in the second quarter.