Hurricane Dean is expected to cost Munich Re less than 100 million euros ($136 million), the reinsurer said on Wednesday, adding that it was sticking to its 2007 earnings forecast.

Munich Re expects a claims burden in the mid to high two-digit million euro range before tax, the world's second biggest reinsurer said in a statement.

Hurricane Dean pounded the Caribbean and Mexico late last month.

The company confirmed its full-year targets of achieving a net profit of between 3.5 billion and 3.8 billion euros, and a combined ratio below 97 percent.

The combined ratio measures costs and claims as a percentage of premiums and is a key indicator of profitability, with a ratio below 100 percent showing the company made money on underwriting.

Munich Re shares fell 0.3 percent to 128.46 euros in early trade, in line with the decline among European insurers.

Total insured market damages from Hurricane Dean would be in the $1 billion-$2 billion range, Munich Re said, adding that such damages were within the expected range of its risk models.

The world's fourth biggest reinsurer, Hannover Re, said on Tuesday that it expected Dean to be defined as a major claim, entailing a damage claim burden for itself of at least 5 million euros.