Munich Re has reported net income of €2.7 billion ($4.6 billion) for last year, beating its forecast by €200 million ($340 million).

The earnings are above the €2.3 billion ($3.9 billion) achieved in 2018, and this year the German reinsurer is projecting net income of about €2.8 billion ($4.8 billion)

The reinsurance business performed strongly last year, with consolidated earnings rising to €2.27 billion ($3.9 billion) from €1.86 billion ($3.2 billion) in 2018.

Property and casualty reinsurance contributed profits of €1.56 billion (2.7 billion), up from €1.14 billion ($1.9 billion), and premium volume went up to €22 billion ($37.4 billion) from €20.4 billion ($34.7 billion).

But the combined ratio blew out to 101% from 99.4% of net earned premiums due to huge natural catastrophe losses. The impact of large losses from natural catastrophes rose to €2.05 billion ($3.5 billion) from €1.26 billion ($2.1 billion).

The most expensive natural disaster for the reinsurer was Typhoon Hagibis, which struck Japan in October last year and caused claims losses of €780 million ($1.3 billion).