Allianz Group is confident it can continue performing strongly after its net profit grew 6.3% last year despite tough conditions and higher claims from natural catastrophes.

Net profit reached €6.6 billion ($10.3 billion), propelled by a “very good” fourth quarter, the German insurance giant says.

Operating profit increased 3.2% to €10.7 billion ($16.7 billion) as revenue gained 2.4% to a record €125.2 billion ($194.9 billion).

“Allianz steadily delivers strong results in increasingly challenging operating conditions,” CEO Oliver Bate said. “Our business is healthy and well diversified. This makes us confident that we will continue to deliver strong earnings.”

Allianz expects an operating profit of about €10.5 billion ($16.3 billion) this year, with a plus-minus margin of €500 million ($778.3 million).

Gross written premium from the property and casualty division grew 6.8% to €51.6 billion ($80.3 billion) last year and operating profit gained 4.1% to €5.6 billion ($8.7 billion).

The combined operating ratio deteriorated slightly to 94.6% from 94.3%, largely due to natural catastrophe claims including UK storms and floods in France, the US and India during the fourth quarter.

Statutory premium from the life and health unit fell 0.6% to €66.9 billion ($104.1 billion), while operating profit increased 14.1% to €3.8 billion ($5.9 billion), driven by a higher investment margin.

Allianz’s strong fourth quarter included an 8.6% rise in operating profit to €1.2 billion ($1.9 billion).