Said a spokesperson for the reinsurer, "Despite marked reductions in share prices and the fall in the dollar, the profit for 2008 should be well above 2 billion euros ($3.10 billion)."
Munich Re stated last month that it was unlikely to reach its original net profit target of 3.0-3.4 billion euros for this year, due to sharp declines in world stock markets.
Munich Re’s announcement came as an unpleasant surprise for investors, who had thought the company a safe haven stock since it had successfully avoided the credit market problems that plagued larger rival Swiss Re.
The announcement last month was largely responsible for slowing Munich Re's outperformance, with shares in both reinsurers now down more than 16 percent this year although still ahead of the DJ Stoxx index of European insurance shares, down 22 percent.
According to Munich Re's chief financial officer, the company has a buffer for further share declines built into its revised profit target for 2008.