Munich Re has posted a third-quarter profit of €525 million ($799.84 million), down from €736 million ($1.1 billion) in the corresponding period last year.

CFO Jorg Schneider says despite the drop, the reinsurer remains “on course” for an annual profit of at least €3 billion ($4.56 billion).

“The capital market turbulences have left their mark on the investment result, with below-average realised gains on disposals, writedowns of equities and losses from derivative hedging instruments,” he said.

Gross written premium increased 3.6% in the third quarter to €12.5 billion ($19.04 billion).

If exchange rates held stable, premium volume would have fallen 1.5%, Munich Re says.

The combined operating ratio for property and casualty reinsurance deteriorated to 94.5% from 91.3%.

Natural catastrophe losses in the third quarter totalled €62 million ($94.4 million) and man-made losses were €324 million ($493.55 million).

The biggest natural catastrophe loss followed an earthquake off the coast of Chile in September, which is expected to cost €45 million ($68.54 million).

Munich Re expects the Tianjin port explosions in China to cost €175 million ($266.57 million).