Munich Re, the world's largest re-insurer, reported a sharp increase in second-quarter net profit Friday as more careful underwriting and a lack of major accidents and disasters helped earnings. Net profit increased to €625 million ($754 million) from €28 million in the April-June period last year, the company said. Munich Re said it had focused on avoiding reinsurance agreements that didn't meet its profitability standards. The company improved its combined ratio, a key measure of insurance profitability, to 94.7 percent from 94.9 percent in last year's second quarter. Investment income slipped in the second quarter to €2.2 billion from €2.8 billion last year.