Munich Re has escaped relatively unscathed from the subprime credit crisis with another record profit, due to a conservative investment strategy and prudent disposals.

The global reinsurer has flagged a 10% increase in profit to €3.9 billion ($6.5 billion) for last year on the back of minimal subprime exposure, marking its fourth record result in as many years.

In contrast to its closest competitor Swiss Re - which revealed a CHF1.2 billion ($1.24 billion) writedown in November - Munich Re's overall expenses from subprime-related writedowns and disposal losses are a more modest €150 million ($250 million).