Munich Re’s consolidated profit fell to €2.2 billion ($3.11 billion) in the first nine months of this year, down from €2.7 billion ($3.82 billion) on lower premium and reinsurance income.

“We are holding our own in spite of a difficult business environment,” CFO Jorg Schneider said.

The reinsurer is targeting a €3 billion ($4.25 billion) profit for the calendar year and “although we are not home and dry yet, we are very confident”.

Reinsurance accounted for €1.71 billion ($2.42 billion) of group consolidated profit in the nine months, down from €2.32 billion ($3.28 billion) in the corresponding period last year.

It generated €510 million ($726.59 million) in the third quarter, down from €1.03 billion ($1.46 billion).

Currency translation effects curbed premium growth, Munich Re says. Gross written premium (GWP) fell 0.9% in the nine months to €21 billion ($29.78 billion).

Major losses in property and casualty primary insurance and reinsurance, increased expenditure in life reinsurance in Australia and the US and a loss on the disposal of the Windsor Health Group were negative items for the third quarter.

Munich Re expects GWP for the calendar year to be €51 billion ($72.32 billion), based on exchange rates remaining stable. It targets gross premium income of about €27.5 billion ($38.99 billion) for reinsurance and about €17 billion ($24.1 billion) for primary insurance.