MüRe came out with their half year report yesterday and it was not well accepted by the market. The report can be found here on their home page. The second quarter looks bad for two reasons: The first one is because it is so much worse then Q1 in 2013 and secondly it is because it is also much worse then Q2 in 2012.
There are some things that should be not be forgotten before I go any further here and that is that 2012 was an excellent, excellent year for MüRe since they were forced to pay out very little due to catastrophes and almost all the segments did well also Q1 in 2013 was outstanding. From my point of view the market are therefore comparing a good profit period (Q2 2013) with two outstanding ones (Q2 2012 and Q1 2013). No wonder they are upset about the outcome. I am however not very upset.
In Q2 2013 MüRe was hit by the flooding's that took place in eastern Europe as well as in Germany and there will still be some costs to come before it is fully sorted out. So in Q2 there was a post of -372 million € that comes from the reinsurance of property & casualty (over -200 millions €) and over -100 million € for the Life part. Generally the Life part (with Ergo) has been losing ground quarter by quarter. They now claim that they have come out with two new interesting products (in cooperation with the reinsurance people) on the market which they expect will reclaim the lost ground for Ergo. Future will tell.
As can be seen in the table that I took from the financial report at the link above they have done pretty good if one is looking at the first half year of 2013.
In the first half of 2012 MüRe had a profit of 1.59 billion € and during this first half they had a profit of 1.52 billion €. If they keep this up also during the second half of the year then we will maybe not get a new record earnings but we will at least get something pretty similar to last year with the possibility of a very nice dividend payment around the 7 euros.
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