(Bloomberg) — Munich Re, the world's second-largest reinsurer, rose the most since November 2011 after announcing a dividend that beat expectations. The company reported fourth-quarter profit that was unchanged from a year earlier.
The shares gained as much as 5.2% in Frankfurt. Munich Re plans to raise the dividend for 2015 to 8.25 euros ($9.14) a share from 7.75 euros a year earlier, the company said in a statement on Thursday. That beat a Bloomberg dividend forecast of 8 euros per share.
Reinsurers including Munich Re, Swiss Re AG and Hannover Re sell backup coverage to insurance companies, protecting them against big risks such as natural catastrophes. While natural catastrophe losses last year fell to the lowest since 2009 last year, earnings in the industry continue to be squeezed by record-low interest rates and declining prices for coverage.
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.