Munich Re has recorded a solid first quarter, with net profit for the three months to March 31 up 25% to €979 million ($1.27 billion) from the corresponding period last year.

The company described the first quarter as having gone “very well” for the group, which is forecasting a profit of “close to €3 billion” ($3.89 billion) for the full year.

Gross written premium (GWP) rose 0.5% to €13.3 billion ($17.24 billion), with the increase muted by the impact of exchange rates.

Claims expenditure for major losses in the first quarter came in below the long-term average.

Munich Re CFO Jorg Schneider says lower claims were experienced from major losses, “but the group’s operating earnings also proved to be robust”.

The majority of the profit was posted by the company’s reinsurance business, with a net profit for the quarter from that division of €827 million ($1.07 billion).

Reinsurance premium income was up 1.8% on the first quarter last year, rising to €7 billion ($9.07 billion), with the property and casualty (P&C) division delivering premium income of €4.4 billion ($5.7 billion).

The company says premiums were boosted by “price increases in the segments recently affected by major losses, including natural catastrophe covers and marine business”, while premiums also increased for US agricultural business following the recent drought in that country.

P&C reinsurance recorded a combined operating ratio of 85.7% for the quarter, as natural catastrophe losses only amounted to around €24 million ($31.11 million) and man-made major losses to €81 million ($105 million) for the period.

Munich Re says it remains on track to write GWP of between €50-€52 billion ($64.8-$67.4 billion) for the full year to December 31.

It says it could better its full-year P&C combined operating ratio target of around 94% “if major losses remain within the expected range in the further course of the year”.