The world's largest reinsurer Munich Re said yesterday it was on target to hit its full-year profit goals despite a spike in man-made claims.

Munich Re said it had been hit by a “significant increase in man-made major losses” in the quarter to 30 June 2018.

Read more: AIG buys UK life insurance business from Munich Re

It said overall expenditure for major losses over €10m (£9m) each was €605m, equivalent to 13.3 per cent of net earned premium and above the average expected figure of 12 per cent.

Man-made major losses cost €501m, with the most expensive loss “by far” resulting from structural damage to a hydroelectric power station in Colombia.

In contrast to 2017 when insurers were hit by massive payouts for natural disasters such as hurricanes, losses from natural catastrophes were just €104m.

Read more: Munich Re eyes up the skyscraper plot by the Citys Leadenhall Market

Despite the increase in man-made losses profit for the first half was up by 20.5 per cent to €1.555bn

Joachim Wenning, chairman of the board of management said: “With a half-year profit of €1.6bn, we are most certainly on track to reach our profit target of €2.1–2.5bn for the year as a whole.”

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