German reinsurer Hannover Re has recorded first-quarter net income of €233 million ($347 million), up 0.7% on the corresponding period last year.

Catastrophe losses were below average, with missing Malaysia Airlines flight MH370 the only major incident. Reserves of €30.6 million ($45.6 million) have been set aside for this event.

Gross written premium was down 3.6% to €3.62 billion ($5.4 billion), partly due to a “fiercely competitive” non-life reinsurance market.

“Hannover Re showed discipline in maintaining its profit-oriented underwriting policy and in so doing accepted modest declines in premium volume,” the company said.

Investment income was up 1.8% to €361 million ($538 million), and the combined operating ratio for the period was 94.4%.

CEO Ulrich Wallin says the profit “was driven by a very pleasing underwriting result in non-life reinsurance and good investment income. This shows we have adjusted well to the challenging business environment.”