MUNICH (Bloomberg) ? Munich Re shares were downgraded by JPMorgan Chase & Co., Merck Finck & Co. and Norddeutsche Landesbank Girozentrale, citing concern over future growth.

The world?s second-largest reinsurer yesterday raised its full-year profit forecast, announced its first ever share buyback, and reiterated a forecast for premiums of as much as 38 billion euros ($48.6 billion) this year, which would be at about the same level as last year, adjusted for the sale of the two insurers.

?Munich Re said there would be no topline growth in the core reinsurance business,? Michael Huttner, an analyst at JPMorgan in London, wrote in a note to clients yesterday. Also, ?the missing news we believe is there is no commitment to a continuing programme of buybacks.? He cut his rating to ?neutral? from ?overweight?.

He raised the December 2007 share price estimate to 141 euros from 128 euros.

Munich Re yesterday posted a 45 percent gain in third- quarter profit and raised its full-year earnings forecast to as much as 3.4 billion euros as damage claims plunged a year after Hurricane Katrina. Munich Re also said it will spend as much as 1 billion euros buying back shares.

Munich Re shares rose 80 cents, or 0.6 percent, to 129.30 euros in Frankfurt yesterday.

?We think Munich Re is currently living nearly in the best of all worlds,? Konrad Becker, an analyst at Merck Finck & Co. in Munich wrote in a note to clients. ?However, it seems to us unrealistic that these favourable conditions will remain.?

Becker lowered his recommendation on Munich Re shares to ?hold? from ?buy? and increased his fair value per share 5 euros to 133 euros.