FRANKFURT May 8 German reinsurer Munich Re reported a 4.6 percent drop in net profit in the first quarter, as premium income fell amid a broad-based market decline in reinsurance prices.
Quarterly net profit after minorities fell to 919 million euros ($1.28 billion) from 963 million a year earlier, the world's largest reinsurer said in a statement.
Munich Re reiterated its target of earning net profit of 3 billion in the full year and the quarterly result was slightly better than an preliminary report by chief executive Nikolaus von Bomhard, who told a shareholder meeting on April 30 that it would be around 900 million euros.
Gross written premiums fell 2.7 percent to 12.9 billion euros.
Munich Re and other reinsurers are battling fierce competition from alternative capital investors like pension funds, who are helping to drive down prices in the reinsurance market. ($1 = 0.7183 Euros) (Reporting by Jonathan Gould)