Munich Re, the world's biggest insurer to insurers, today posted first-quarter profits that beat market consensus after its struggling insurance business Ergo returned to profit.
In a statement issued ahead of the Munich-based group's annual shareholders' meeting, Munich Re said first-quarter net profit was €534 million ($645 million) compared to the average in a Reuters poll of analysts of €508 million.
The company suffered a loss of €557 million a year ago. Shares in Munich Re rose nearly 2 per cent in pre-market trade on the Instinet electronic brokering system and analysts said the results looked strong, putting the group on track to meet its €2 billion net profit target for 2004.
Munich Re Chief Executive Mr Nikolaus von Bomhard could face some tough questions from investors today's meeting given the rocky performance of the company's shares.
The stock has declined 7 per cent so far this year, underperforming a 3 per cent drop in European insurance peers.
Quarterly gross premium income - revenue from selling reinsurance and insurance cover to clients - dropped 4.3 per cent to €10.4 billion, slightly below the average of analysts' forecasts of around €10.6 billion.