Munich Re has quadrupled its profits, recording a 2002 surplus of E1.1bn (£746m). However it admitted it had fallen short of market expectations.
The reinsurer, which had anticipated a dividend of E1.25 (84 pence) a share, said profits were hit by E5.7bn (£3.8bn) write-down and reserve strengthening.
The combined ratio, a measure of its true level of profitability, had improved marginally to 106.5% from 112.7% in 2001. This means Munich Re is still paying out more in claims than it receives in premium income.
Board member Jorg Schneider said Munich Re had no liquidity problems and that it did it plan to use additional capital to finance acquisitions.
The group said its full-year premium income had increased by 10.8% to E40bn (£27.1bn) driven by an improvement in its reinsurance business. It forecast its reinsurance renewals would further improve profitability.
