Munich Re has affirmed its net income is on course to exceed €2.5 billion ($4 billion) this year after the business performed above expectations in the third quarter.

Net profit in the three months to September increased 79% to €865 million ($1.38 billion), surpassing the reinsurer’s estimates of €850 million ($1.36 billion).

Solid operating income, high currency gains and strong investment returns helped offset higher catastrophe losses from man-made and natural disasters including Hurricane Dorian and Typhoon Faxai.

“We are very pleased to have achieved extremely good results for two quarters in a row now, despite costly hurricanes and typhoons,” CFO Christoph Jurecka said. “We now expect to surpass our initial profit and revenue targets overall for [the year].”

The property and casualty reinsurance arm achieved €464 million ($742.6 million) in profit, up from €151 million ($241.7 million) a year earlier.

But the combined ratio worsened to 104.7% from 100.7% because of higher major losses. Losses from man-made disasters increased sharply to €404 million ($646.7 million) from €94 million ($150.5 million) and natural disasters cost about €577 million ($923.7 million), up from €505 million ($808.4 million).

Losses from Typhoon Hagibis, which devastated parts of Japan last month, could be more costly, the reinsurer warned. The Hagibis loss bill will be reported in the fourth quarter.