The world's largest reinsurer Munich Re said yesterday it was on target to hit its full-year profit goals despite a spike in man-made claims.
Munich Re said it had been hit by a “significant increase in man-made major losses” in the quarter to 30 June 2018.
It said overall expenditure for major losses over €10m (£9m) each was €605m, equivalent to 13.3 per cent of net earned premium and above the average expected figure of 12 per cent.
Man-made major losses cost €501m, with the most expensive loss “by far” resulting from structural damage to a hydroelectric power station in Colombia.
In contrast to 2017 when insurers were hit by massive payouts for natural disasters such as hurricanes, losses from natural catastrophes were just €104m.
Despite the increase in man-made losses profit for the first half was up by 20.5 per cent to €1.555bn
Joachim Wenning, chairman of the board of management said: “With a half-year profit of €1.6bn, we are most certainly on track to reach our profit target of €2.1–2.5bn for the year as a whole.”