Hannover Re is confident of another good year ahead after net profit grew 10.1% to a record €985.6 million ($1.36 billion) last year.

Gross premium volume from non-life insurance gained 1.1% to €7.9 billion ($10.9 billion), while the combined operating ratio improved to 94.7% from 94.9%. Group net premium earned grew to €12.4 billion ($17.11 billion) from €12.2 billion ($16.83 billion) in 2013.

“Hannover Re is exceptionally pleased with the development of its business [last year],” the company says. “Both business groups, namely property and casualty and life and health reinsurance, as well as the investment income, played a part in this good result.”

A benign hurricane season and the absence of major natural catastrophes pushed down net expenditure on losses to €425.7 million ($587.59 million), compared with €577.6 million ($797.25 million) in 2013.

Hannover Re’s major losses included Storm Ela in Europe at €49.1 million ($67.77 million) and damage to Tripoli airport in Libya at €63.4 million ($87.51 million).

The Brisbane hailstorms in November cost the German reinsurer €18.9 million ($26.87 million).

Hannover Re’s life and health division generated net profit of €205 million ($282.95 million), lifted in part by expansions in Australia.

The group says its strong balance sheet and global reach will help it ride out another year of tough business conditions.

“Our good market position as a broadly diversified reinsurer [and] our excellent financial strength… should nevertheless enable us to achieve another good result [this year],” CEO Ulrich Wallin said.

The group is targeting net profit of €875 million ($1.21 billion) this year, with provisions for major loss expenditure set at €690 million ($952.21 million).