Munich Re has announced that its 2001 profit fell 85% after the World Trade Centre attacks cost it Euros 2.2bn (£1.4bn).
The company's net income fell to Euros 250m (£154m), from Euros 1.75bn (£1.1bn) the year before.
Analysts had expected earnings of approximately Euros 473m (£292m).
However, Munich Re said it is confident that its 2002 profits will surpass those of 2000.
The company plans to pay an unchanged dividend to shareholders.
