German underwriter Munich Re consolidated profit rose by 10% to €812m in the second quarter of 2012, compared with a consolidated profit of €738m during the same quarter last year.

The insurer said that the profit rose as underwriting business performed sound, and the investment result showed a marked improvement on the same period of the earlier year.

Munich Re CEO Nikolaus von Bomhard said the company’s conservative approach to business is proving robust in these uncertain times.

"With a profit of €1.6bn for the first half-year, we have achieved well over half of our target of around €2.5bn. So we are well on track to slightly surpass the originally envisaged profit for the year," Bomhard said.

In the second quarter, the reinsurance registered an operating result of €1.1bn, while compared with year-end 2011; its equity grew by 8.8% to €25.4bn.

The firm is optimistic about its business performance in times ahead; as the group hopes that for the 2012 financial year its gross premiums written will range between €50bn and €52bn.

Gross premium income will be in between €27bn and €28bn in the reinsurance segment, and a figure of between €17bn and €18bn for primary insurance.