FRANKFURT: German insurance giant Allianz reported third-quarter profits on Wednesday thanks to a strong performance by its property and casualty division, prompting a more optimistic yearly forecast.

The company’s year-on-year profit for the period from July to September climbed 16.7 percent to 2.46 billion euros ($2.47 billion), it said in a statement.

Its earnings before interest and taxes climbed by more than seven percent, with damage insurance driving the rise with a 32-percent jump.

Allianz said it is targeting full-year earnings of 13.4 billion euros within a margin of one billion euros either way, but is now aiming for the upper end of the range.

“Allianz’s resilient earnings power bodes well for our long-term growth trajectory,” Chief Financial Officer Giulio Terzariol said in a statement.

The positive outlook comes after Allianz’s asset management unit was rocked by legal troubles in the United States, where investors have filed a complaint over heavy losses suffered during the coronavirus pandemic.

The Munich-based firm said its total sales increased by 1.3 percent and the damages branch by 14 percent, contrasting with shrinking sales in its health-life division as clients were more reluctant to take out contracts in Italy and Germany.

The profitability of the damages branch overcame large payouts linked to Hurricane Ian, which caused widespread damage in the United States and Cuba earlier this year.