(Reuters) – German reinsurer Munich Re Group announced higher gains for the first quarter, confirming its full-year outlook on Tuesday, despite a challenging environment.
The company said its first-quarter profit grew to 608 million euros ($ 642 million), up from last year’s 589 million euros, in a result it described as “durable” in a statement.
Munich Re’s operating profit reached EUR 780 million, a slight decrease compared to EUR 798 million a year ago.
However, the company’s gross premiums increased significantly by 15.7% to EUR 16.83 billion from last year’s EUR 14.55 billion.
The annual return on equity for the quarter was 9.8%, compared to 10.4% a year ago.
Despite the uncertainty in a challenging environment, Munich Re maintained its annual profit guidance of € 3.3 billion based on a quarterly profit of more than € 600 million, the reinsurer said.
The gross premium is now expected to increase to EUR 64 billion in 2022, compared with an earlier estimate of around EUR 61 billion.
In a statement accompanying the results, Munich Re’s CFO Christoph Jurecka said that the company also helps provide humanitarian aid to the people of Ukraine and “fully supports” the sanctions against Russia.
“The economic consequences of the war and the sanctions severely affected our performance in the first quarter: We made write-downs for write-downs on both Russian and Ukrainian bonds and recorded the first claims,” he said.