Munich Re has booked a first-half net profit of €1.4 billion ($2.4 billion) blaming “difficult conditions on the capital markets” for a 34% decline against the corresponding period last year.

The German reinsurer reported net profit of €621 million ($1.05 billion) in the second quarter in line with a forecast by CFO Jorg Schneider last month.

Quarterly net profit dived 46% on last year’s result of €1.15 billion ($1.94 billion), while first-half net profit was 34% under the €2.1 billion ($3.5 billion) collected in 2007.

Operating profit for the first half fell 24% to €2.2 billion ($3.7 billion) while net premium reduced 2% to €17.2 billion ($29 billion).

But the reinsurer reiterated a full-year profit forecast of “well in excess” of €2 billion ($3.4 billion).

Meanwhile, Hannover Re has recorded a 14% decline in first-half net profit of €252 million ($427 million).

Operating income fell 14% to €400 million ($678 million) while net written premium declined 8% to €3.4 billion ($5.8 billion).

The group’s combined ratio improved to 98.4% from 102.1%.