MILAN (Reuters) -Generali beat nine-month profit forecasts as lower claims and price increases offset a 930 million euro ($982 million) hit from natural disasters, the Italian insurer said on Friday.

Nine-month operating profit – closely watched by the market – rose 7.9% to 5.4 billion euros ($5.7 billion), above a company-provided analyst consensus estimate of 5.15 billion euros.

Adjusted net profit came in at 2.9 billion euros, above the consensus of 2.75 billion euros, but down 3.3% year-on-year due to a positive capital gain recorded in 2023.

Operating profit at Generali’s non-life business, which in previous quarters was dragged down by the impact of natural catastrophes, rose 2.5% to 2.21 billion euros, above the consensus of 2.1 billion euros.

“The main driver was a combination of the price increases implemented in the past” and a better quality of portfolio, finance chief Cristiano Borean told a post-results briefing.

“In addition we had a little bit less of what we call man-made claims, which are not related to catastrophes”, he added.

European insurers are facing escalating challenges as climate change intensifies, with more frequent and severe natural disasters such as floods and wildfires.

Borean estimated a further 100 million euros impact from natural disasters in October and November.

Generali’s solvency ratio, a measure of financial strength, fell to 209%, from 220% a year ago, because of the acquisition of Liberty Seguros in January, regulatory changes, market and non-economic variances, the company said in a statement.

The ratio has declined slightly since the end of September, Borean said without elaborating.

Generali, which will unveil a new strategy on Jan. 30, is on track to meet all its targets to 2024, Borean added.

($1 = 0.9472 euros)

(Reporting by Gianluca Semeraro; Editing by Giulia Segreti and Mark Potter)