Tokio Marine’s profit fell 44% to ¥71.9 billion ($827 million) in the year to March 31 thanks to earthquake claims and a fall in underwriting income.

The group has warned of tougher times ahead due to losses from the Japan earthquake and tsunami, forecasting its 2012 profit would fall to ¥25 billion ($287 million).

Tokio Marine said earlier this month that this year’s profit would fall due to around ¥90 billion ($1.03 billion) in earthquake claims. Releasing its annual result, it said it faced large payouts from the earthquakes in Japan and Christchurch as well as other natural disasters.

Underwriting income fell 3% to ¥2968 billion ($34 billion) and the company said it will implement a global diversification strategy and reduce risk through reinsurance. It will also increase its underwriting reserves.