Munich-based insurance giant Allianz Group said 2010 third quarter net income dropped 8.8 percent to EUR1.3 billion ($1.8 billion at current exchange rate) due to a higher tax expense.

Allianz said revenues in the quarter increased 11.4 percent compared to the 2009 third quarter to EUR24.5 billion ($33.6 billion).

For the first nine months of 2010, Allianz said net income is up 25 percent to EUR4 billion ($5.5 billion) compared to EUR3.2 billion ($4.4 billion) a year ago.

Because of the results so far, Allianz CEO Michael Diekmann said he expects full year operating profit to "trend towards the upper end of our target range of around EUR7.2 billion ($9.9 billion), plus or minus EUR500 million ($686.5 million)."

For Allianz's property and casualty business in the 2010 third quarter, the company said gross written premiums increased by 3.6 percent to EUR10.6 billion ($14.6 billion), while operating profit climbed 8.8 percent to EUR1.1 billion ($1.5 billion). Allianz said improved underwriting results and higher operating investment income contributed to the operating profit growth.

Net income from continuing p&c operations rose 11.7 percent to EUR872 million ($1.2 billion).

The p&c combined ratio was 97.1, up from 96.9 in the 2009 third quarter. Natural catastrophes accounted for three points in the 2010 third quarter.