Munich Re is aiming for a profit of €3 billion ($4.58 billion) this year, down 9% on last year due to low interest rates and expectations of a higher tax bill.

CEO Nikolaus von Bomhard says it is an ambitious target, given the headwinds the company faces.

Reinsurance CEO Torsten Jeworrek says the renewals of April 1 (mostly for Japan) and July 1 (including Australia) will generate premium volume of about €3.2 billion ($4.89 billion).

He expects the environment to remain competitive if there are no major loss events.

“Given our strong position in the market, we expect to be able to limit the effects on our own portfolio,” he said.

The group expects gross written premium of about €50 billion ($76.45 billion) this year and a combined ratio from property and casualty of 95%.