Munich Re took an $800 million loss on derivatives contracts in the first quarter, caught off guard by a rally in stock markets.

(Bloomberg) — Munich Re, the world’s biggest reinsurer, took a 706 million-euro ($800 million) loss on derivatives contracts in the first quarter, caught off guard by a rally in stock markets.

The majority of the losses were incurred by hedging against gains in stocks, Chief Financial Officer Joerg Schneider said on a conference call on Thursday, when the company reported first- quarter earnings. He didn’t provide further details.

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