(Bloomberg) – A record year for natural-disaster insurance claims worldwide and a decline in fourth quarter profit wasn't enough to stop Allianz SE from raising its dividend.

Europe's biggest insurer will increase the dividend for 2017 by 5.3% to 8 euros ($10) a share, the company said in a statement Friday. Analysts expected a payout of 7.9 euros, according to the Bloomberg Dividend Forecast.

Like other insurers, Allianz had to contend with one of the worst Atlantic hurricane seasons in history last year and California's wildfires in the fourth quarter. Claims arising from the wildfires, Hurricanes Harvey, Irma and Maria and other natural catastrophes rose to 1.1 billion euros for the firm last year, up from 700 million euros a year earlier.

Allianz reported decreased net income of 1.4 billion euros in the last three months of 2017, a 22% decline from a year earlier after the one-time impact of U.S. tax changes and a write down following the sale of Oldenburgische Landesbank. The insurer fell as much as 1.2%, the most in a week, and was down 0.4% at 10:39 a.m.

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