Munich Re has made a first-half net profit of €3.9 billion ($6.38 billion), up 23.5% on a year earlier.

The June half result includes a 6.1% rise in second-quarter net profit to €2.21 billion ($3.61 billion).

The reinsurer says a “very low” major loss expenditure in property and casualty reinsurance and “very strong” investment result supported the second-quarter earnings.

In the quarter the P&C reinsurance segment made a net profit of €1.25 billion ($2 billion), up 4.9%. Major loss expenditure corresponded to 4.9% of net insurance revenue, far below the expected 18%.

The reinsurer says natural catastrophe losses amounted to €54 million ($88 million) and man-made losses stood at €137 million ($224 million), while claims from the Iran war have so far totalled €30 million ($49 million) in the P&C reinsurance segment.

Prices have shown a “downward trend” at recent renewals and Munich Re has “systematically opted not to renew or write business that did not meet expectations with respect to the required prices or terms and conditions.

“Falling prices also reduced the volume. Owing to largely stable contractual terms and conditions, the quality of the portfolio remains high.”