The European Union's powerful insurance watchdog EIOPA on Friday blasted stagnant political talks to finalise new risk capital rules for the insurance sector, saying delay was undermining EU credibility internationally.

Munich Re, the world's biggest reinsurer, expects to beat its 2012 net profit target of $3.1 billion after rising premiums and improved underwriting performance boosted the German group's quarterly earnings.

Hannover Re beat expectations with net profit rising five-fold to $344 million in the first quarter, helped by surging investment income and the absence of big damage claims.