Munich Re eyes growth in profits for 2018, digital transformation investment continues
German insurer Munich Re believes its profits will grow to between €2.1bn and €2.5bn in 2018.
Projections were released by the multinational firm this week as it seeks to steady the ship after a number of natural catastrophes in 2017 led to a significant payouts.
Munich Re is targeting the profit figure, which represents an increase on its guidance for last year, after admitting that as a cost-saving measure it will be cutting around 900 jobs in Munich and the United States.
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Digital transformation is high on its agenda as it looks to respond to the growing demand for digital solutions in the insurance market.
"Munich Re is again poised for growth," said Chairman Joachim Wenning. "Our target for 2018 is slightly higher than the profit guidance for the previous year.
"Our growth initiatives in reinsurance are benefiting from tailwinds as prices rise. We are investing heavily in digitalisation and are cutting costs to prepare for digital transformation and make Munich Re fit for the future."
The company also announced that it would launch another share buy-back programme to repurchase €1bn worth of shares before the 2019 Annual General Meeting. A buy-back programme of the same scale is ongoing and scheduled to be completed before this year’s AGM.