Munich Re predicts strong 2009 for insurers
by David Masters
Story link: Munich Re predicts strong 2009 for insurers
Germany-based Munich Re, one of the world’s biggest reinsurers, has said that 2009 will be a good year for insurance companies.
Munich Re’s chairman, Nikolaus von Bomhard, anticipates lower operating ratios and higher premiums for the year ahead.
On average von Bomhard predicts that combined ratios will improve by 2-3%.
He added that the global recession ‘doesn’t have to be the end of the world’ for insurers.
Munich Re needs to perform more strongly next year to improve its capital position.
Like most finance companies, Munich Re struggled during the collapse of the global credit markets.
Furthermore, catastrophe payouts for hurricanes Gustav and Ike caused the company to fall short of its profit targets for 2008.