MUNICH (Bloomberg) — Allianz SE, Europe’s biggest insurer, raised its forecast for 2006 profit after earnings doubled in the third quarter following fewer US hurricanes.Net income will probably rise to between 6 billion euros ($7.7 billion) and 6.5 billion euros this year, chief financial officer Helmut Perlet told journalists last week. Allianz was previously aiming for profit of 5.5 billion euros to 6 billion euros. Third-quarter earnings doubled to 1.6 billion euros.

Allianz’s claims for natural disasters dropped 93 percent in the third quarter from last year, when hurricane Katrina contributed to industry-wide insured damages from catastrophes of as much as $94 billion, according to estimates by Munich Re, the world’s second-largest reinsurer. Perlet said the company may use some of its 7 billion euros of “excess capital” to increase dividends and buy back stock.

“Insurers are looking at some of their best financial returns in decades,” London-based insurance broker Willis Group Holdings Ltd. said in a report published last week.

The company reported preliminary earnings figures, and will provide a more detailed breakdown on Friday. Allianz had net income of 4.38 billion euros in 2005.

Allianz’s property and casualty unit doubled net income to 1.09 billion euros from 506 million euros, above analysts’ estimates of 981 million euros. Gross premiums were little changed at 10.4 billion euros. Allianz had claims from natural catastrophes of 53 million euros in the third quarter, down from 753 million euros a year ago.

Spending on claims and other costs at the property and casualty insurance division fell to 90.2 cents of each euro in premium income from 98.6 cents a year earlier. The so-called combined ratio will probably be below 93 percent for the full-year, Perlet said in an interview.