Munich Re has posted first-quarter profits of €785 million ($1.3 billion), demonstrating it is on track to meet a €3 billion ($4.9 billion) profit forecast for the year despite major investment losses and jumpy capital markets.

Gross written premium declined €1.7 billion ($2.8 billion) during the quarter to €23.8 billion ($38.8 billion).

Munich Re reaped €586 million ($956 million) from reinsurance activities, down 27%, while insurance profit declined 22% to €246 million ($401 million).

The reinsurer recorded a 12% drop in operating profit to €1.2 billion ($2 billion), while investment income waned 47% to €1.7 billion ($2.8 billion).

Floods at two Queensland mines contributed about €200 million ($326 million) alone in cost for the reinsurer.

Fellow German reinsurer Hannover Re has posted a 23% increase in net profit to €151.5 million ($247 million) during the first quarter on the back of a 59% boost in operating profit to €246 million ($403 million).

The company’s net premium earnings were €1.68 billion ($2.75 billion), while the combined ratio improved significantly from 105.5% to 99.5%.