Munich Re says its net profit came to about €1.3 billion ($2.16 billion) in the first quarter, a better-than-expected result that may see it exceed full-year targets.

The reinsurer says it still anticipates a net profit of €4 billion ($6.66 billion) for the 2023 financial year and “surpassing this target has become more likely due to the first-quarter result”.

The January-March investment result and operational business performance were both positive, it says.

In property-casualty reinsurance, major losses from natural catastrophes were higher than expected, though the combined ratio of about 86.5% was only slightly worse than an expected full-year combined ratio of 86%.

The quarterly financial results were for the first time reported in accordance with the new IFRS 9 and IFRS 17 standards. In property-casualty, effects from accretion of interest and from discounting currently make a positive contribution to profits, Munich Re says.