By Pietro Lombardi
Munich Re expects its 2021 profits to more than double compared with the expected figure for this year, as the impact of the coronavirus pandemic should be significantly lower.
The German reinsurance giant said Tuesday that it expects profits of 2.8 billion euros ($3.34 billion) next year, up from the EUR1.2 billion it expects for this year.
Coronavirus-related claims in reinsurance should be around EUR500 million next year, it said.
The group targets premium income of EUR55 billion and return on investment of more than 2.5% in 2021.
"All forecasts and targets face considerable uncertainty owing to fragile macroeconomic developments, volatile capital markets and the unclear future of the pandemic," it said.
The company will present its strategy and mid-term financial targets on Dec. 8.
Looking at this year, Munich Re forecasts a fourth-quarter profit of roughly EUR200 million. Costs related to the pandemic weighed on the quarter, as they did with the company's performance so far this year.
Write to Pietro Lombardi at email@example.com; @pietrolombard10
(END) Dow Jones Newswires
December 01, 2020 05:35 ET (10:35 GMT)Copyright (c) 2020 Dow Jones & Company, Inc.