Munich Re, the German reinsurer, confirmed its profit forecast for the year after reporting significantly better-than-expected results in the first quarter, thanks to below-average major loss burdens, improved investment returns, and strong operational performance.

On Wednesday, the company reported a net profit for the first three months of the year 2024 of 2.14 billion euros (2.30 billion US dollars), which matches preliminary figures. This compares with 1.27 billion euros in the same period last year and exceeded the estimates coming from a consensus compiled by the company of 1.48 billion euros.

The insurance revenue from issued insurance contracts rose to 15.06 billion euros, thereby exceeding the consensus of 14.9 billion euros. The investment result amounted to 2.16 billion euros, well ahead of the expected figure of 1.51 billion euros, and represented a return on capital of 3.8%.

"We continue to expect a profit of 5 billion euros in 2024. In fact, it has become more likely that we will exceed this target," said CFO Christoph Jurecka. The group anticipates ongoing favorable business opportunities in the coming quarters.