BERLIN, Oct. 18 (Xinhua) -- German reinsurer Munich Re is "likely to surpass" its forecast of 2.5 billion euros (2.78 billion U.S. dollars) for 2019 as the company announced a strong third quarter (Q3) results on Friday.
According to Munich Re, it generated a consolidated result of approximately 850 million euros in Q3, despite "high major-loss expenditure." The figures were still subject to the outcome of the ongoing quarterly closing to be published in early November.
The Q3 result was due to "good operational performance, strong currency gains, and a very good investment result," Munich Re said.
The German reinsurer expected to surpass its target despite "typically considerable uncertainties about developments in major losses and the capital markets" during the rest of the year.
Following the announcement, shares of the DAX-listed Munich Re climbed by almost two percent, the highest level since 2002.
On Wednesday, Commerzbank upgraded its rating for Munich Re from "Hold" to "Buy" and raised its price target from 225 to 265 euros. Shares of Munich Re are currently trading for slightly more than 246 euros.
Last week, Munich Re announced to invest 250 million U.S. dollars in American insurance startup Next Insurance, gaining 27.5 percent of shares and making the startup a unicorn. Munich Re is already cooperating with Next Insurance as a reinsurer.