Munich Re has posted net profit of €3.2 billion ($4.6 billion) for last year, down from €3.3 billion ($4.8 billion) in 2013.

Gross written premium was down to €48.8 billion ($70.8 billion) from €51.1 billion ($74.1 billion), with the combined operating ratio for reinsurance moving to 92.7% from 92.1%.

Overall expenditure for major losses totalled €1.2 billion ($1.7 billion), down from €1.7 billion ($2.5 billion).

For the fourth quarter, net profit was down almost 42% to €700 million ($1 billion).

Munich Re says January renewals were marked by an oversupply of reinsurance capacity and downward pressure on prices.

Reinsurance CEO Torsten Jeworrek says “consistent cycle management” is key in this environment.

“In addition, we offer innovative risk transfer solutions even for very complex risks – a fact that is becoming more and more important for companies in this globalised economy.”

Munich Re expects little change in subsequent renewal rounds this year, unless extraordinary loss events occur.