Munich Re has reported net profit of €1.19 billion ($1.3 billion) for the first half of this year, up from €1.13 billion ($1.23 billion) in the same period last year.

Profits were aided by a 43% increase in investment results in the first half to €5.1 billion ($5.58 billion) from the same period last year, but undermined by major losses, especially in the reinsurance business.

Group operating result for the period was €2.22 billion ($2.43 billion), up from €2.11 billion ($2.31 billion) in the first half of last year, while gross written premium rose 9.3% to €22.6 billion ($24.7 billion).

Second-quarter net profit edged ahead to €709 million ($1.02 billion) from €697 million ($1 billion).

Munich Re’s primary insurance segment achieved profit of €293 million ($320 million) for the first half of this year, a big improvement from the €1 million ($1.09 million) reported in the same period last year.

Despite “exceptionally heavy burdens from major losses”, Munich Re’s reinsurance business reported a result of €1.06 billion ($1.16 billion) in the first half, down 19% from €1.31 billion ($1.43 billion) in the prior corresponding period.

The reinsurance combined ratio for the first half deteriorated to 106.4% from 97.9%.

Munich Re CEO Nikolaus von Bomhard says despite the losses the company’s results have put it on track to achieve its profit target of more than €2 billion ($2.86 billion) for this year.

“While the technical result was again hit by large losses in the second quarter, we were able to post a very pleasing profit from investments,” he said. “We aim to earn a profit of over €2 billion in 2010 – that remains ambitious, but it is achievable.”