Munich Re’s net profit fell 9% to €974 million ($1.41 billion) in the quarter to June 30 as loss expenditure for major events blew out to €542 million ($786 million) from €207 million ($300.2 million) in the corresponding period last year.

For the half-year to June 30, net profit declined 24.5% to €1.4 billion ($2.03 billion).

The German reinsurer has maintained its full-year profit target of €2.3 billion ($3.34 billion) despite the earnings slide.

This is “subject to claims experience with regard to major losses being within normal bounds, and to [the] income statement not being affected by severe currency or capital market developments, significant changes in tax parameters or other exceptional factors”.

Second-quarter natural catastrophe losses grew to €335 million ($485.8 million) from €21 million ($30.5 million) and man-made major losses increased to €207 million ($300.2 million) from €186 million ($269.8 million).

The wildfire in Alberta, Canada, will cost about €400 million ($579.4 million) in net expenditure.

Overall gross written premium (GWP) dropped 4.3% to €11.93 billion ($17.3 billion) in the June quarter, while net earned premium fell 4.4% to €11.81 billion ($17.12 billion) and investment results improved 9.1% to €2.75 billion ($3.99 billion).

The reinsurance business recorded a 2.1% decline in GWP to €6.96 billion ($10.1 billion), while earnings increased 17.8% to €992 million ($1.44 billion), pushed up in part by currency gains.

The combined operating ratio for property and casualty reinsurance blew out to 99.8% from 93.3%.

The underperforming Ergo primary insurance unit remains a drag, booking a €34 million ($49.3 million) loss compared with a €215 million ($311.8 million) gain in the corresponding period last year.

“Ergo is investing heavily to make itself fit for the future,” the unit’s CEO Markus Riess said.

“We are leveraging the opportunities of digitalisation to ensure a successful future.”

 In June Munich Re unveiled a €1 billion ($1.45 billion) plan to revive Ergo.