Munich Re abandons '08 target as Q3 profits dwindle

The world’s largest reinsurer recorded profits of €12m in the three months to July, a huge fall from the €1.2bn posted in Q3 2007. It means the firm is likely to miss its forecasted 2008 profits of €2bn and its aim of achieving earnings per share of €10. Chief financial officer Joerg Schneider blames the drop on the “ongoing volatility” of the markets, adding it has led to an unreliable profits forecast for the year as a whole. “The 2008 financial year is proving difficult on account of the financial crisis,” he says. “But the Munich Re Group is acquitting itself well compared with it...