Munich Re has raised its full-year profit outlook thanks to below-average losses.

CEO Nikolaus von Bomhard has also flagged the end of falling rates.

He says competition on prices, terms and conditions remained high at the July renewals, but a 2.1% fall in price compared with a 3.6% slide in July last year suggests “this could be the first indication of a stabilisation in prices”.

Premium volume remained almost constant.

Munich Re is aiming for a full-year profit of at least €3 billion ($4.46 billion), compared with its earlier forecast range of €2.5-€3 billion ($3.71-$4.46 billion), even if claims experience returns to normal levels.

The German (re)insurer last week posted a half-year profit of €1.87 billion ($2.78 billion), up 10% on the corresponding period last year.

Group gross written premium (GWP) grew 3% to €25.5 billion ($37.9 billion).

Total reinsurance GWP gained 5% to €14.12 billion ($20.99 billion), with property and casualty reinsurance GWP up 6% to €9 billion ($13.37 billion) and the division reporting a combined operating ratio of 92.8%, compared with 94.1% in the corresponding period last year.

Mr von Bomhard says the profitability of the core reinsurance business “remains remarkable”.

He announced the group will increase its efforts to “grow through digitalisation”.