Munich Re has posted second-quarter net profits of €1.150bn, more than five times the €185m the insurer saw in the second quarter of 2005 and well ahead of market consensus of €782.11m.
Second quarter pretax profit increased by 68.6% to €1.85bn.
The insurer's combined ratio in property and casualty reinsurance improved considerably to 92.1% from 103.0%.
The company said net profits were underpinned by increases in the insurer's primary insurance business, the net result of which rose 52.7% to €310m, boosted by a combined property-casualty ratio that improved to 87.2% from 90.3%.
Gross premiums in the primary insurance unit, however, dropped 7.3% to €3.964bn from €4.278bn.
Munich Re reiterated its outlook for 2006, saying that even it were to be affected by major losses or by a further moderate price fall on stock markets, the target of a 15% return on risk-adjusted capital (RORAC) is still within reach.
