Munich Re 2Q net profit lower

The Munich-based company said earnings in the April-June period fell 47 percent to euro599 million (US$928 million) from euro1.1 billion a year earlier.

Gross premiums written for the second quarter were down 0.4 percent to euro18.86 billion (US$29.23 billion) from euro18.93 billion.

Last month, the company issued a profit warning, backing off its previous forecast of full-year profit between euro3 billion and euro3.4 billion (US$4.7 billion and US$5.3 billion) and saying it now expected lower earnings--though "still well above euro2 billion," or US$3.1 billion.

Reinsurers sell backup coverage to other insurers, spreading risk so the system can handle large or widespread losses.