Despite good overall half-year profits, Munich Re has reported a 74% decrease in profits for the second-quarter of the year, revealing the fallout from recent reserve strengthening of its US unit American Re.

While raised reserves from liability business assumed by American Re in the past few years for casualty operations undercut half-yearly profits by €750 million ($1.2 billion), Munich Re’s second quarter still produced an overall profit of €182 million ($294 million).

That’s despite written premiums falling by 1.5% from last year to €19.4 billion ($31.3 billion), and net premium income falling to €9.05 billion ($14.63 billion) from €9.11 billion ($14.36 billion).

Chairman Nikolaus von Bomhard says the results underline how strong Munich Re’s earnings power has become. “We therefore see our return target of 12% for the whole year [as] within reach.”