Munich Re to do share buyback
The globe's largest reinsurer, Munich Re, had laid out plans to buyback EUR1 billion or USD1.35 billion worth of outstanding shares in light of the third quarter profit decline by 44%.
Net income had been reduced to EUR637 million from a high of EUR1.13 billion in 2012. In a statement, the reinsurer said that despite the decline in net income, the amount still surpassed the EUR587.3 million average estimated by Bloomberg surveyed analysts. The said buyback plan is scheduled to be completed by April 30 next year, just in time for the annual shareholder's meeting.
According to Munich Re CFO Joerg Scheneider, "Although we are not home and dry yet, we are very confident of achieving a profit of 3 billion euros."
Share prices decline by nearly 2% to EUR151.55 in early morning trading in the Munich bourse. This signifies an 11% increase overall in share values, pegging Munich Re's market value at EUR27.2 billion. Overall, the Bloomberg Europe 500 Insurance Index had increased by 23%.