Munich Re expects growth boost

May 29, 2001
Web Posted at 0915 GMT

FRANKFURT, May 28 (Reuters) - The world's largest reinsurer, Munich Re (FMUV2), said on Tuesday it expected double digit growth in 2001 net profit with a further boost for earnings from closer ties with its partner HypoVereinsbank AG.

Munich Re, which mainly covers risks for primary insurers but also operates its own primary insurance arm as well as asset management business, said it expected 2001 gross premium income to rise by 6.5 percent from the previous year to 33 billion euros.

First quarter gross premium income -- revenues from selling reinsurance and insurance products -- rose by 16.9 percent to 8.914 billion euros.

First-quarter net profit was at 805 million euros and at 255 million euros adjusted for special effects related to changes in the valuation of its holding in Allianz AG (ALVG)