2022 was a challenging year for insurers, which also faced claims from Hurricane Ian in Florida, pandemic losses and high inflation.

"Munich Re absorbed the crises of 2022 well," Chief Executive Officer Joachim Wenning said.

Net profit in the fourth quarter of 1.516 billion euros ($1.61 billion) compares with 871 million euros a year ago.

2022 profit of 3.419 billion euros was up from 2.932 billion a year earlier and greater than the 3.294 billion euros that analysts had expected. Munich Re had targeted 3.3 billion euros.

On Wednesday, Munich announced it would raise its dividend and buy back more shares.

Hurricane Ian and floods in Australia helped to make 2022 one of the costliest years on record for natural disasters, Munich Re said last month, warning that climate change was making storms more intense and frequent.

($1 = 0.9412 euros)

(Reporting by Tom Sims and Alexander HuebnerEditing by Miranda Murray)