(MENAFN- AFP) The world's biggest reinsurer, Munich Re, said on Tuesday its second-quarter net profit fell sharply, weighted by the cost of floods and other natural disasters, but confirmed its targets for 2013.
Earnings dropped 34.5 percent from the level a year before to 529 million euros ($702 million) between April and June, when the company paid out 605 million euros for damage from floods in Europe, Canada and elsewhere and a tornado in Oklahoma.
The second-quarter earnings were below expectations of analysts polled by Dow Jones Newswires, who had forecast a net profit of 584 million euros.
The group also saw its operating profit fall by 46 percent to 594 million euros. However, gross revenues rose by 1.6 percent to 12.81 billion euros.
"Unlike the first quarter of 2013, the second quarter was significantly affected by major losses," said chief executive Nikolaus von Bomhard.
"The business environment remains difficult, owing to the low interest rates. Against that background, the half-year result is very satisfactory."
The group confirmed its targets for 2013 as a whole, predicting a net profit of three billion euros and gross premium revenues between 50 billion and 52 billion euros.
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