(Reuters) — German reinsurance group Munich Re said on Tuesday that losses on stocks and other securities caused second-quarter profit to fall to 768 million euros ($783 million) from 1.11 billion euros in the year-ago period.
The profit per share was €5.50. compared to €7.89 in last year’s second quarter. Operating profit was EUR 763 million, down from EUR 1.55 billion.
For 2022, Munich Re now expects its investment performance to represent a return of more than 2%, revised down from a previous forecast of more than 2.5%.
The company noted that the other targets previously communicated for 2022 are unchanged. Munich Re is still aiming for a consolidated profit of 3.3 billion euros for the full year.
However, in the board̵7;s view, the goals are subject to increased uncertainty going forward due to fragile economic conditions, fluctuating capital markets and the unclear path of the corona pandemic.
The economic consequences of Russia’s war in Ukraine are also still up in the air, it added. In the first half of the year, Munich Re set aside around 200 million euros for losses resulting from the war.