FRANKFURT: German reinsurer Munich Re expects to post a net profit of about 1 billion euros ($1.12 billion) in the second quarter as payouts for natural disasters remained subdued and the company benefited from high reserve releases.

"Due to the usual uncertainty concerning developments in major losses and the capital markets during the rest of the year, the target for the 2019 consolidated result remains unchanged at 2.5 billion euros," Munich Re said in a statement.

Munich Re is set to report second-quarter earnings on August 7.

In the first quarter, the reinsurer posted a 23 percent decline in net profit to 633 million euros as a result of higher claims.