Munich Re is targeting a profit of almost €3 billion ($3.81 billion) this year and has forecast a sideways shift in the reinsurance renewals of April and July.

CEO Nikolaus von Bomhard says he is optimistic about the year, despite slow economic growth in many industrialised countries.

Munich Re made a profit of €3.2 billion ($4.07 billion) last year.

At April 1 (mostly in the Japanese and Korean markets) and July 1 (the US, Australia and Latin America) premium volume of about €3.3 billion ($4.19 billion) will be up for renewal, with a greater proportion of natural catastrophe business than in January.

Munich Re predicts the markets will move sideways “at a good level”.

The group anticipates gross written premium of €50 billion to €52 billion ($63.54 billion to  $66.08 billion) this year.

Gross premium income of €27 billion to €28 billion ($34.31 billion to $35.58 billion) is expected in the reinsurance segment, with about €17 billion ($21.6 billion) predicted in primary insurance.

In property-casualty reinsurance Munich Re is targeting a combined ratio of about 94% of net earned premiums.

In property-casualty primary insurance the combined ratio should be about 95%. Munich Health is expected to be about 100%.

The group predicts a consolidated result in reinsurance of €2.3 billion to €2.5 billion ($2.92 billion to $3.18 billion).

It says it does not expect a significant rise in interest rates, so investment income is likely to be “relatively low”, with a return on investment of about 3.3%.