Munich Re net profits slump buy 46%

Munich Re - 1Q16 net profit of €430m ($489m), down 46% YoY, below estimates, primarily due to weaker results from equity investments. The bank stated it has cut its FY16 profit guidance to the lower end of its previous range as it anticipates more costs to restructure its Ergo primary insurance business.

FRANKFURT--Germany's Munich Re AG (MUV2.XE) on Tuesday cut its full-year profit guidance to the lower end of its previous range after net profit almost halved in the first quarter--mainly on weaker results from equity investments--and as it anticipates more costs to restructure the group's Ergo primary insurance business.

Net profit fell 46% to 430 million euros ($489 million) from EUR790 million in the same quarter a year ago. That was well below a Dow Jones Newswires analysts' forecast of EUR550 million. Revenue fell 4% to EUR12.51 billion, below the forecast EUR13.11 billion.