Munich Re reported “above-average” major natural catastrophe losses in the third quarter but remains confident the business is still able to achieve its full-year-earnings profit guidance of €2.8 billion ($4.4 billion).

The business posted an overall profit of €366 million ($573 million) in the three months to September, up from €199 million ($311 million) a year earlier, the reinsurer said in an earnings release last week.

Its property and casualty (P&C) reinsurance arm achieved €138 million ($216 million) in profit, an improvement from the €23 million ($36 million) loss it recorded in the year-earlier period.

P&C reinsurance premium volume grew to €8 billion ($12.5 billion) from €6.8 billion ($10.7 billion).

High natural catastrophe claims made their mark in the three months to September, causing the combined ratio to worsen another 0.6 percentage points from a year earlier to 112.8%.

Major loss events – defined as €10 million ($15.7 million) and above – totalled €1.97 billion ($3 billion) in the third quarter, including €1.2 billion ($1.9 billion) from Hurricane Ida and €500 million ($783 million) from Storm Bernd. In the corresponding period of last year, major losses cost the business €1.52 billion ($2.4 billion).

Ida and other natural catastrophes accounted for €1.73 billion ($2.7 billion) of overall major losses suffered, compared with €474 million ($742 million) a year earlier.

“The horrific images of the devastation wreaked by Hurricane Ida and Storm Bernd remain vivid in our minds,” CFO Christoph Jurecka said.

“Business, government and individuals need to make every effort towards achieving the Paris climate goals in order to slow the pace of climate change and prevent the likelihood of natural catastrophes from increasing any further.”

Munich Re says it now expects the P&C reinsurance arm’s combined ratio to come in at 100% of net earned premium due to the high natural catastrophe losses in the third quarter, up from its previous estimate of 96%.