Munich Re’s full-year profit plunged by €1.72 billion ($2.11 billion) as catastrophe claims and investment losses cut the German’s group’s annual result to its worst result since 2006.

Following a calamitous start to 2011, with the Christchurch earthquake in February and the Tohoku earthquake in March, nearly 90% of Munich Re’s total year-end profit of €710 million ($871 million) was lodged in the fourth quarter.

Claims from the New Zealand and Japan disasters cost a combined €1.5 billion ($1.84 billion), while flooding in Thailand, which began in August and is ongoing, is expected to cost Munich Re around €500 million ($610 million).

The giant reinsurer said in a statement it expects “a significantly improved technical result for 2012” subject to weather events and the impact of currency and market movements.

Profit for the full year ending December 31 2011 was down 71% from the corresponding period last year, its worst result since 2006, a year after the insurer revealed a net loss of €992 million ($1.2 billion).

“We have never experienced a year like 2011 before – extreme burdens from natural catastrophes combined with the financial crisis, which flared up again after the slight recovery in 2009 and 2010,” Munich Re’s Reinsurance CEO Torsten Jeworrek said.

“The consequences of these floods again demonstrate the vulnerability of the globalised economy.”

While gross written premiums rose nearly 9% to €49.6 billion ($60.8 billion), the group’s investment result fell 22% to €6.8 billion ($8.34 billion), including €1.2 billion ($1.47 billion) in Greek Government security writedowns.

Despite global insured losses from natural catastrophes totalling $US105 billion ($98 billion), Munich Re’s reinsurance segment contributed €770 million ($940 million) to the consolidated result.

Combined ratios in property-casualty reinsurance were 113.6%, up from 100.5% in 2010.

Mr Jeworrek says half of Munich Re’s non-life reinsurance business was reviewed in January, with more than 91% renewed.

Munich Re has passed on double-digit percentage increases in reinsurance treaty renewals in the US, Australia and Asia while shedding parts of its European property business.