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BERLIN (AP) - Reinsurer Munich Re AG said Monday that its fourth-quarter profit slipped because of higher taxes, lower investments and a dip in premium income — but said it aimed to post more sales this year than last.
Despite the decline in profit, Munich Re, which operates Ergo, one of Germany's biggest insurers, and Munich Reinsurance America Inc., allayed investors' fears that the subprime mortgage crisis could affect its results. Subprime-related losses were a scant 15 million euros ($22.23 million) in the fourth quarter, meaning its total exposure to such mortgage loans was approximately 340 million euros ($504.8 million), or just less than 0.2 percent of its total investment portfolio.
That brought a palpable sense of relief to investors who bid up the company's shares 2.8 percent to 119.41 euros ($177.30) in Frankfurt trading after the company released its earnings report.
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