HANOVER, Germany (Reuters) - Munich Re, the world's biggest reinsurer, hiked its dividend after a surprise rise in 2013 profit, lifting hopes it can cope with an influx of new competitors and falling prices.
However, the German firm said on Tuesday the profit increase was helped by one-off factors, such as low taxes and damage costs, and the release of buffers built up to cover past claims.
Reinsurers, which help insurers shoulder risks in exchange for part of the profit, have had a buoyant few years, but are now facing one of the biggest market-wide price declines since the late 1990s as their customers press for a better deal.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
