Reinsurance giant suffers first loss in 97 years

Munich Re, the world’s biggest reinsurer, lost £293m (€433m) last year because of the stock market’s prolonged weakness – its first annual net loss in 97 years.

Munich Re, the world’s biggest reinsurer, lost £293m (€433m) last year because of the stock market’s prolonged weakness – its first annual net loss in 97 years.

“We are drawing a line under three difficult years impacted above all by the bear market on the stock exchanges,” said Joerg Schneider, a member of Munich Re’s management board.

Reinsurance companies sell backup coverage to other insurers, spreading risk so the system can handle huge losses from major disasters.

Like others, Munich Re moved to improve its basic business after huge losses from the September 11 terrorist attacks on the United States, raising premiums and restricting the scope of coverage.

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