Munich Re is confident full-year earnings will “significantly exceed” its €2.3 billion ($3.3 billion) forecast after third-quarter net profit grew 30.3% to €684 million ($977.4 million).

The strong quarter propelled net profit in the nine months to September to €2.1 billion ($3 billion).

Improved investment returns and an absence of major losses underpinned the third-quarter result, which offset a decline in gross written premium (GWP).

“The result also benefitted overall from a number of minor one-off effects,” the reinsurer said.

“Following the gratifying result for the third quarter, the profit for the current year is expected to significantly exceed the previously projected amount.

“Whether and to what extent this is the case will, as usual, depend above all on the development of major losses, the capital markets and exchange rates.”

Munich Re says its renewed confidence factors in losses from Category 5 Atlantic Hurricane Matthew.

GWP for the three months to September 30 fell 1.1% to €12.3 billion ($17.6 billion), but the investment portfolio’s income grew 5.7% to €1.6 billion ($2.3 billion).

Third-quarter operating profit increased 75% to €1.01 billion ($1.44 billion).

Major loss expenditure in the September quarter fell to €277 million ($395.2 million) from €386 million ($550.8 million) in the corresponding period last year. Man-made losses declined to €132 million ($188.3 million) from €324 million ($462.3 million).

Natural catastrophe claims increased to €145 million ($206.9 million) in the quarter from €62 million ($88.5 million).

The property and casualty reinsurance arm increased its profit by 68.2% to €558 million ($795.9 million) and its combined operating ratio improved to 92.5% from 94.5%.