German reinsurer Munich Re issues profit warning

0 Comments | AFP, July, 2008

FRANKFURT (AFP) — German re-insurance giant Munich Re warned Friday that its 2008 net profit would miss previous forecasts although it would be "still well above two billion euros" (3.14 billion dollars).

The company had previously given a range of 3.0-3.4 billion euros but a statement said that turmoil on financial markets had "led to an appreciable reduction in the group's investment result in the first half of 2008."

Shares in the company plunged 12.58 percent to 101.78 euros in late morning trade on the Frankfurt stock exchange where the Dax index of leading stocks was 1.55 percent lower.

Munich Re said it estimated that second quarter profit had fallen by nearly one half from a year earlier to around 600 million euros.

Financial director Joerg...