Standard & Poor's has warned that Munich Re must improve its operating performance during the remainder of 2003.
Commenting on the German reinsurer's first quarter 2003 results, S&P said Munich Re's first-quarter results were "broadly in line" with its expectations.
However it called for further improvement in its operating performance in 2003 as the price increases effect its operations.
The rating agency called for Munich Re to hit reinsurance and primary insurance combined ratios of below 100%.
It also said Munich Re needs to restore its capital adequacy to a "strong level by the end of this year", to make the reinsurer more consistent with the ratings on its group operating companies.
