German reinsurer Hannover Re says third-quarter net profit grew 21% to €251 million ($363 million).

Earnings were lifted by the core businesses and investment income.

Hannover Re says it is on track to earn a full-year profit of €850 million ($1.2 billion) after the strong third quarter.

Gross written premium grew 9.9% to €3.6 billion ($5.2 billion) and net investment income climbed 13.6% to €413.8 million ($598 million).

The combined operating ratio for the non-life sector improved to 95.8% from 96.3%.

Net profit for the nine months to September was €695.4 million ($1 billion), up 10.3% on the corresponding period last year.

“Both business groups and the investment income fully lived up to our expectations,” CEO Ulrich Wallin said. “We are well placed to navigate the challenging market environment.”

Hannover Re says property and casualty reinsurance remains “intensely competitive”, with part of its North America and Latin America portfolios up for renewal in the quarter.

Total net expenditure on major loss events totalled €242.2 million ($350 million), well below the reinsurer’s estimate of €491 million ($710 million).

Damage to Tripoli Airport during the ongoing conflict in Libya prompted Hannover Re’s biggest loss, costing it €50 million ($72 million).