Hannover Re still expects a full-year net profit of at least €950 million ($1.4 billion), despite a weak second quarter.

Net profit for the three months to June 30 fell 14.8% to €214.9 million ($313.4 million), taking the half-year figure to €486.1 million ($708.9 million), down 8.6%.

Hannover Re says its profit target is within reach provided major loss expenditure does not exceed the budgeted €825 million ($1.2 billion) and no unforeseen distortions hit capital markets.

“The half-yearly results… put Hannover Re well on track to achieve its targets,” the German reinsurer says. “It remains the company’s expectation that net income after tax will reach at least €950 million for the full financial year.”

Second-quarter gross written premium (GWP) eased 4% to €4.02 billion ($5.9 billion), with the half-year figure down 3.5% to €8.3 billion ($12.1 billion).

Operating profit for the June quarter dropped 6.1% to €338.5 million ($493.7 million), down 5.6% to €745.2 million ($1.09 billion) for the half-year.

Property and casualty net profit fell 30.4% to €171.9 million ($250.8 million) in the June quarter, GWP dropped 9.8% to €2.1 billion ($3.06 billion) and the combined operating ratio deteriorated to 96.1% from 95%.

“The losses incurred by Hannover Re in the second quarter were significantly higher than expected,” the company says.

Wildfires in Canada’s Alberta province presented the biggest loss event for Hannover Re, totalling €131.6 million ($192 million).

Life and health made a net profit of €52.7 million ($76.9 million) in the June quarter, up from €18.1 million ($26.4 million) last year. GWP improved 3.5% to €1.9 billion ($2.8 billion).

Second-quarter net investment income fell 1.2% to €378.5 million ($552.2 million), down 6.8% to €744.8 million ($1.09 billion) for the half-year.