Global reinsurer Munich Re has posted a profit of €2.038 billion (around CA$3.06 billion) for the first nine months of 2018, along with a third-quarter profit of €483 million (around CA$726 million), despite large natural catastrophe losses.

In the third quarter, Typhoon Jebi and Hurricane Florence dealt losses of around €300 million each, the reinsurer’s quarterly report said. However, these losses were offset by robust growth of 21% in gross written premiums for the property and casualty reinsurance business, reaching €5.7 billion.

Meanwhile, ERGO – Munich Re’s primary insurance unit – generated a profit of €173 million for the third quarter, and €359 million for the period from January to September. ERGO International generated a profit of €15 million – in spite of negative one-off effects owing to the optimization of its international portfolio. ERGO’s operating result climbed to €451 million from €297 million in the previous year.

Munich Re’s solvency ratio by the end of the third quarter exceeded 260%, a marked improvement over the 244% at the start of the year.

As for Munich Re’s outlook for the full year of 2018, it said that it is on track to achieve its profit target, which ranges from €2.1 billion to €2.5 billion.

“This good Q3 result puts us on track to achieve our profit target for 2018 – despite a series of major natural catastrophes still continuing in the fourth quarter,” said Jörg Schneider, chief financial officer of Munich Re. “The benefits of first-class primary insurance and reinsurance cover become apparent in times of climate change and growing economic risks.”