MUNICH (Reuters)—Munich Re expects to be profitable this year after rising premiums helped offset a hit from tornadoes in the United States and writedowns on Greek debt and pushed quarterly net profit above expectations.

"Despite the exceptionally heavy claims burdens we aim to achieve a positive result for the year," Chief Executive Nikolaus von Bomhard said in a statement.

Net profit after minorities rose 3.8% to €736 million ($1.06 billion) in the second quarter, the world's biggest reinsurer reported on Thursday, better than the €660 million ($950.3 million) average estimate in a Reuters poll.

DZ Bank analyst Thorsten Wenzel also pointed to a lower tax rate helping quarterly earnings.

Munich-based Munich Reinsurance Co. said net profit took a €125 million ($180.0 million) hit in the quarter from a €703 million ($1.01 billion) writedown on its Greek sovereign debt exposure to reflect market values as of the end of June.

European banks and insurers agreed to participate in a second rescue package for debt-stricken Greece that includes a 21% haircut on their sovereign bond holdings.

"In my estimation, this package is the right step because it should give the capital markets the certainty they so urgently need in the short term to calm the troubled waters," Mr. von Bomhard said.

But the company said it has not yet determined the specifics of its participation in the second rescue package for Greece.

Shares were listed 1.6% higher in local Frankfurt trading as of 0639 GMT, better than early pre-market indications for the DAX blue chip index .

Munich Re's share has fallen by more than 12% so far this year, hammered by earthquakes in Japan and New Zealand and investor worries about its exposure to heavily indebted euro zone countries. Other reinsurers have also been hit.

Data from StarMine, which weights analysts' forecasts according to their track record, show Munich Re trading at 9 times 12-month forward earnings, a discount to rival Swiss Reinsurance Co. Ltd. at a multiple of 9.3 but a premium to Hannover Reinsurance Co., which trades at a multiple of 6.8.