Hannover Re says its 2011 net income will be around €600 million ($732 million) when it reports on March 14, surpassing its target of €500 million ($610 million).

The group says investment income has played a vital part in the increased profit, as it used low interest rates to gain on the sale of high-quality government bonds and switch into corporate bonds.

Hannover says the improved result allows for net losses of €196 million ($239 million) from the Thai floods.

In 2010 the group earned net income of €748.9 million ($913 million) but last year lowered its profit target due to heavy catastrophe losses.