Man-made disasters such as the Grenfell Tower fire in London contributed to a 24.8% drop in Munich Re’s second-quarter profit, but it remains confident of meeting the full-year target of €2-€2.4 billion ($2.99-$3.58 billion).

While the German group’s payout for Grenfell is unspecified, the event is part of the €187 million ($279.64 million) claims total for man-made disasters in non-life reinsurance.

Munich Re’s gross written premium (GWP) fell slightly to €11.8 billion ($17.64 billion) from €11.92 billion ($17.82 billion) in the corresponding period last year.

GWP for the reinsurance business was €7.65 billion ($11.43 billion), down from €7.82 billion ($11.69 billion).

The property and casualty reinsurance combined operating ratio improved to 93.9% from 99.8%.

First-half profit was €1.29 billion ($1.92 billion), down from €1.41 billion ($2.1 billion) in the corresponding period last year.

Chairman Joachim Wenning says Munich Re is “well on track” to reach its full-year profit guidance.

“We have the right strategy, and we can concentrate on implementing that strategy by writing profitable new business,” he said. “Both of our fields of business offer many opportunities in this regard.

“The bundling of our competencies in reinsurance and primary insurance allows Munich Re to continue driving digital transformation consistently across the entire value chain.”