Munich Re expects its second-quarter net profit to rise to €1 billion ($1.6 billion) from €728 million ($1.16 billion) a year earlier, boosted by low major-loss expenditure and high reserve releases for basic losses in reinsurance from prior years.

A final result will be announced in coming weeks.

Munich Re has also affirmed its forecast for a full-year net profit of €2.5 billion ($4 billion), up €200 million ($320 million). It has said previously it expects the combined operating ratio for the property and casualty (P&C) arm to improve 1.4 percentage points to 98% in the full year.

In the first quarter, the reinsurer recorded a decline in net profit to €633 million ($1.01billion) as major loss expenditure increased sharply to €479 million ($766.4 million) from €62 million ($99.12 million) on losses from Typhoon Jebi.

The P&C combined operating ratio deteriorated to 97.9% from 88.6%.

Recent renewals were encouraging, though, with India and Japan making up one-third of business renewed in April.

Last year Munich Re’s second-quarter earnings suffered from higher-than-expected man-made losses and the P&C combined operating ratio blew out to 102%.