Munich Re posted a €780 million ($999 million) profit in the first quarter of this year due to reduced losses from natural catastrophes as well as higher investment income.

This compares with a €947 million ($1.2 billion) loss in the first quarter last year.

CFO Jorg Schneider says he expects a significantly improved full-year underwriting result.

“We are still aiming at a consolidated result in the region of €2.5 billion ($3.2 billion),” he said.

The group’s investment result increased 4.7% to €2.2 billion ($2.8 billion) and gross written premium (GWP) increased 2.2% to €13.3 billion ($17 billion).

The reinsurance division reported substantially lower claims costs. GWP increased 1.7% to €6.8 billion ($8.7 billion). Its operating result was €906 million ($1.2 billion), compared with a €1.6 billion ($2.1 billion) loss for the corresponding period last year.

Munich Re’s primary insurance segment had a €257 million ($329 million) operating result, up 53.9%.

The combined ratio for property/casualty was 95.3%, improved from 96.9%.

Munich Health’s operating result was €32 million ($41 million), down 13.5%. Even so, Munich Re says international health primary insurance business increased 16% to €587 million ($752 million), with premium growth in the UK and US.