Net income at property and casualty reinsurance, Swiss Res biggest unit, dropped 39 percent to $283 million.

The aftershocks of the U.K.s vote to leave the EU continue to reverberate across financial markets.

Zurich is merging its biggest units, global life and general insurance, and reorganizing along geographical lines.

The economic losses could be significantly higher, given that only a third of home-insurance policies in Germany include natural hazard cover.

Torrential rain, thunderstorms and flash floods that have inundated towns in southeastern Germany in recent days took the death toll to at least eight.

The plan for Ergo's operations includes cutting 1,835 jobs, or about 13% of the Dusseldorf-based companys workforce in Germany.

Munich Res new profit target of $2.6 billion now includes restructuring costs at the Ergo primary-insurance unit.

Europes biggest insurer was helped by gains from selling investments.