Munich Re has reported first-quarter net profit of €790 million ($1.12 billion), down 16% on the corresponding period last year.

CFO Jörg Schneider says the reinsurer is “well on track” to achieve its full-year profit target of €2.5-€3 billion ($3.5-$4.2 billion).

“We have started off well, although investment has again been made more difficult by the expansive policies of the central banks,” he said.

Gross written premium was up 0.9% to €13.04 billion ($18.41 billion) in the quarter.

The combined operating ratio for property and casualty reinsurance deteriorated to 92.3% from 86.9%.

Reinsurance CEO Torsten Jeworrek says pressure on prices and terms and conditions remains high.

“But because we were able to take advantage of selective opportunities in individual markets, our premium volume nevertheless increased slightly.”