Munich Re has announced its third quarter net profit rose to €513m from €386m in the same period last year.
Chief financial officer Joerg Schneider said: "Although natural hazard events caused losses far in excess of what was to be expected, we are able to post a high profit for the exceptional quarter.
"In view of the excellent investment result in prospect and the generally good performance of our underwriting business, we should reach our annual target of a 12% return on equity after tax."
The reinsurer said its profit was mainly due to the further improvement in the result of the ERGO Insurance Group and to sales proceeds from the continued restructuring of investments to reduce concentration risks. The overall investment result, it said, amounted to €3,078m (€1,667m).
Munich Re said Hurricane Katrina cost it €800m and Rita was anticipated to cost around €260m before tax. The company said the full loss from all Atlantic cyclones would amount to €750m after tax.
Taking into account other natural disasters, Munich Re said the total cost burden from natural catastrophes for the third quarter of 2005 amounted to €1.2bn net before tax and reflected in an "exceptionally high" combined ratio of 124.6% (105.8%).
Munich Re said the third-quarter operating result in reinsurance business was down 16.5% to €313m. The
reinsurers' consolidated result amounted to €344m, positively influenced by lower write-downs, lower losses on disposals, and higher gains from sales of shareholdings.
