Governments across the globe have been banning public gatherings in the fight to slow the spread of the novel coronavirus. Munich Re said that claims within its property and casualty reinsurance segment have caused it to anticipate profits in the low three-digit-million euro range for the first three months of 2020. By comparison, the company posted first quarter profits of €633 million last year.

The reinsurer’s annual guidance will suffer as a result of this outbreak, and a share buyback programme planned for 2020/2021 will be discontinued until further notice, said the company.

“Munich Re will not attain its profit guidance of €2.8 billion for 2020 as a whole,” the reinsurer said in a recent statement.

However, even taking into account the loss developments, Munich Re’s solvency ratio remains solid, sitting within the range of 175 to 220 per cent of the requirement.