German insurer Munich Re says it avoided heavy subprime damage

0 Comments | AFP, January, 2008

FRANKFURT (AFP) — German reinsurance giant Munich Re sought Wednesday to reassure investors with an advance release of its 2007 net profit figure, which surpassed its target and suggested the group had escaped damage from the US subprime crisis.

Munich Re said 2007 profit climbed to 3.9 billion euros (5.8 billion dollars) and that it was mulling a dividend of 5.5 euros per share, an increase of 22 percent from the level in 2006.

The group had posted a net profit of 3.5 billion euros in 2006.

It said Wednesday that charges stemming from exposure to investments connected with the US market for high-risk, or subprime, mortgages were less than 10 million euros in the fourth quarter of 2007.

But it added that the US housing crisis could still affect its...