Munich Reinsurance Co. posted profit of €729 million ($789.5 million) for the fourth quarter of 2014, down 38.9% from the comparable period in 2013, the reinsurer reported Wednesday.

Munich Re said its results had been negatively affected by currency translations because of the weakening of the euro against some other currencies, among other factors.

For the fourth quarter of 2014, Munich Re posted gross written premiums of €12.02 billion ($13.03 billion), down 3.6% compared with the fourth quarter of 2013.

The reinsurer's investment income in the fourth quarter increased by 8.3% compared with the fourth quarter of 2013 to €1.97 billion ($2.14 billion).

For the full 2014 year, Munich Re posted a consolidated profit of €3.17 billion ($3.44 billion), down 4.9% from 2013.

Gross written premiums for 2014 fell by 4.3% compared with 2013 to €48.85 billion ($52.97 billion), Munich Re said.

Nikolaus von Bomhard, CEO of Munich Re, said in a call with analysts that the reinsurer had shed some business because rates were not satisfactory, some because of decreased cedent demand, and some because of the expiration of quota share deals, among other factors.

For 2014, Munich Re posted investment income of €8.00 billion ($8.67 billion), up 10.4% from 2013.

For its property/casualty reinsurance operations, Munich Re posted a combined ratio of 92.7% for 2014 compared with 92.1% for 2013.

Munich Re said it was targeting a consolidated profit of about €2.5 billion to €3.00 billion ($2.71 billion to $3.25 billion) for 2015.

The reinsurer said that range was wide because of the current high level of political and economic uncertainty.

Munich Re said that both the reinsurance and investment markets would remain “challenging” for 2015.

Fierce competition, driven in part by ample available capacity, likely will continue in the reinsurance market, Mr. von Bomhard said.

There are “new players coming to our plate to eat our cooking,” he said, referring to the continued inflow of alternative capital to the reinsurance market.

“Rigorous cycle management” therefore will be key for Munich Re, he said.

Mr. von Bomhard said that while preparations for the upcoming Solvency II risk-based capital regulatory regime for insurers and reinsurers in Europe had been costly for companies such as Munich Re, he believes the rules, which will come into force at the start of 2016, will have “more upside than downside” for Munich Re, because the rules come close to the way the reinsurer would like people to see its business.