However, the Germany-based reinsurer admitted that the full year results would reflect weaker performance, over the previous year.
"The group results for 2001 will show a big reduction compared with last year but will probably still be positive," it said.
At the start of October, quarterly figures reflected a loss of 2.1 billion euros. Aside from the September terrorist attack, other disasters that impacted on the group’s earnings were the recall of the Baycol/Lipobay by Bayer AG last August; the probable total loss of the communications satellite PAS 7, Typhoon Nari in Taipei in the middle of Sept., and the chemical explosion in chemical plant in Toulouse last Sept. 11.
Munich Re suffered its combined ratio to rise to 179.6 percent in the third quarter along, and it totaled to 133.9 percent for the first nine months of the year.
However, the group’s premium income for the third quarter grew by 20.1 percent to 8.8 billion euros compared to last year. It likewise grew by 14.7 percent to 25.8 billion euros in the first nine months of the fiscal year.
"With double-digit increases in premium income, both the reinsurers and primary insurers in the Munich Re group recorded earnings-oriented growth," it claimed.
In reinsurance, premiums grew by 18.4 percent up to the end of September reaching 15.5 billion euros. In the primary insurance, it increased by 10.1 percent to 11.5 billion euros.
Munich Re explained that growth in reinsurance was partly due to higher premium rates achieved in the preceding renewal negotiations. It added that growth was also registered in its foreign subsidiaries in the second half.
Still another factor aiding Munich Re is the deferred valuation of its share’s in Allianz AG and the positive effects of the German tax reform.
Likewise, it optimistically looks forward to a halt in the deterioration of the claims situation and the capital markets by the end of the year. "Munich Re will even pay a dividend of 1.25 euros per share."
So optimistic is the global reinsurer that it is already forecasting strong growth and substantial earnings in 2002.
"With steady growth in primary insurance and asset management, the result achieved in 2000," it said in a press statement.
Part of its optimism, is that there has been "substantial price increases and fundamental improvements in conditions as renewals for reinsurance treaties" are ongoing giving the reinsurance business better competitive advantages.
Dr. Hans-Jurgen Schinzler, board chairman of Munich Re said that Sept. 11 terrorist attack in New York "demonstrate how much primary insurers continue to need reinsurance as a risk-transfer vehicle to guarantee their own claims-paying ability when faced with extreme financial burdens."
Schinzler also focused on reinsurer’s security saying that the financial strength and claims-paying ability. "Primary insurers will take a very close look at their reinsurers in the future to be sure they can rely on having their claims paid even when the going get tough."
Meanwhile, the value of the reinsurer’s investments slipped 0.7 percent compared to December 2000. In the third quarter alone, investments reached 2.4 billion euros while from Jan. to Sept. it was noted at 7.7 billion euros.