Natural catastrophe losses may have dented Munich Re’s first-quarter result, but the German reinsurer still predicts year-end profit will top €2 billion ($2.85 billion).

Speaking ahead of its May 7 earnings release for the first quarter, Munich Re CEO Nikolaus von Bomhard says the “exceptional accumulation” of storms in Australia and Europe and earthquakes in Haiti and Chile will cost about €700 million ($1.5 billion) in claims. More than €500 million ($714.6 million) is from claims in Chile.

Dr von Bomhard says Munich will unveil a “clear profit” to the market this month.

“Carrying risks is our core competency,” he said. “This includes reinsuring losses from natural catastrophes of the sort we have already witnessed this year.

“The result for the first quarter will show that we are on track to meet our target for the year.”

The company is also expecting a $US100 million ($108.2 million) hit in claims from the sinking of the oil-drilling rig Deepwater Horizon in the Gulf of Mexico last month.