(Bloomberg) – Munich Re, the world's second-biggest reinsurer, expects profit to decline this year as falling prices for its products and low interest rates weigh on investment earnings.

The company plans to repurchase 1 billion euros ($1.1 billion) of stock before its 2017 shareholder meeting, Munich Re said in a statement Wednesday. That follows a repurchase of the same size that ends in April. Net income for this year is expected to decline to between 2.3 billion euros and 2.9 billion euros, compared with 3.1 billion euros reported for 2015, the Munich-based company said.

"On account of continuing low interest rates and intensive competition in reinsurance, this is an ambitious target," Chief Executive Officer Nikolaus von Bomhard said. "Especially because we cannot expect to see a repeat of the below-average expenditure for natural catastrophe claims that we had in 2015."

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