Munich - The giant German insurer Munich Re said Wednesday it was holding its dividend steady despite investment write-downs leading to a 47-per-cent slump in second-quarter earnings.

The Munich-based reinsurer said net profit in the three months to the end of June fell to 599 million euros (929 million dollars) compared to 1.14 billion euros a year ago.

Last month, the group said the shake-out in global financial markets sparked by the US subprime mortgage-sector crisis meant it could miss its 2008 earnings forecast.

However, the reinsurer said its 2008 dividend would remain at 5.50 euros a share.

Munich Re's rival, Swiss Reinsurance Co, unveiled Tuesday a 53- per-cent drop in second-quarter earnings to 564 million Swiss francs (536.5 million dollars) as a result of write-downs totalling 362 million Swiss francs. (dpa)