Munich Re Mulling Profit Target of $3.3 Billion in Earnings Gain
Munich Re Mulling Profit Target of $3.3 Billion in Earnings Gain
(Bloomberg) --
Munich Re is considering whether to set itself a long-term net income target of 3 billion euros ($3.3 billion) a year as the company seeks to match levels it regularly achieved until 2015.
The reinsurer may announce such a plan by the end of the year, said a person with knowledge of the matter who asked not to be identified because the information isn’t public. Munich Re’s most recent forecast is for 2020 earnings of 2.8 billion euros.
The reinsurance industry is trying to recover from huge natural disasters after the combined insured losses for such events rose to a record during the two years through 2018. Munich Re’s profit fell to about 400 million euros in 2017 after Hurricanes Harvey, Irma and Maria weighed on the company.
Chief Executive Officer Joachim Wenning has identified increasing profits, digital transformation and reducing complexity as priorities for the company. Munich Re declined to comment on its earnings goals.
Munich Re was up almost 1% at 273 euros at 11:35 a.m. in Frankfurt. The shares have gained 22% in the past six months.
German newspaper Handelsblatt wrote about Munich Re’s profit target earlier.
To contact the reporter on this story: Stephan Kahl in Frankfurt at skahl@bloomberg.net
To contact the editors responsible for this story: Chad Thomas at cthomas16@bloomberg.net, Andrew Blackman, Chris Bourke
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