Reinsurance company Munich Re has reported a year-on-year fall in profits of roughly £1.3bn for the year ended 31 December 2020.
The group’s profit for the year declined to £1.05bn as it endured a year marked by high losses in connection with Covid-19.
Pandemic-related losses for the firm totalled nearly £3bn, stopping the firm from achieving its envisaged 2020 profit target of over £2.4bn.
Joachim Wenning, chairman of the board of management at Munich Re, said that despite the “tremendous challenges” the firm faced throughout the year, it “closed out 2020 with a clear profit”.
The group now intends to achieve its 2020 profit target in 2021, subject to macroeconomic developments, volatile capital markets, and the unclear development of the pandemic.
It has also forecasted a rise in premium income to roughly £47.5bn for the year ahead, with a return on investment to be above 2.5%
Wenning added: “In 2021, we expect to meet the profit target that we envisaged prior to the pandemic. All the pieces are in place. Our reinsurance business is ideally positioned to resolutely exploit opportunities for profitable growth in the improved market environment.
“We are refraining from launching a new share buy-back programme at this time, because our shareholders will benefit more from investments in the attractive business opportunities now emerging.”