(Reuters) – Munich Reinsurance Co. on Wednesday reported a 56% decline in the fourth quarter following a disaster of natural disasters but suggested that profits be increased by 2018.
The result dropped to 238 million ($ 271.13 million) from 538 million a year earlier but met expectations.
It suggested a dividend of EUR 9.25 per share, up from EUR 8.60 for 2017 and higher than analysts had expected, Reuters voted.
For the full year, the German reinsurance company showed a profit gain of EUR 2.275 billion, in line with its target of EUR 392 million in 2017, the most expensive year ever for the industry after a series of natural disasters.
Munich Re's goal was to post a profit of EUR 2.1
"We are very pleased with the overall result for 2018," says CFO Christoph Jurecka.
The decline in net profit in the fourth quarter followed two fires in California, with losses of aro and 430 million euros.
Munich Res combined share, profitability measure, was 105.1% for the fourth quarter of the reinsurance business, worse than 103.9% a year ago.
Munich Re and the insurance industry are bouncing back from a series of major hurricanes, fires and earthquakes in North America 2017. Reinsurance companies have been under pressure in recent years from falling prices among intense competition.
Munich Re said the price of contract renewals in January was "stable" but that the market environment was expected to improve during the next round in April.