Nov. 9 (Bloomberg) -- German stocks advanced for a fourth day, the longest winning streak since September, after the Group of 20 nations agreed to maintain stimulus measures and Allianz SE said third-quarter profit more than doubled.

Allianz climbed 4.3 percent as investment income at the country’s largest insurer recovered from year-earlier writedowns. Puma AG rose 4.5 percent after the sporting-goods maker said it expects to be profitable in the fourth quarter. Continental AG jumped 5.2 percent as Citigroup Inc. recommended Europe’s second-largest auto-parts maker.

The benchmark DAX Index added 2.4 percent to 5,619.72 in Frankfurt. The measure has rallied more than 50 percent since March 6 as companies posted better-than-estimated earnings and investors speculated the global recession is easing. The broader HDAX Index gained 2.3 percent today.

U.K. Chancellor of the Exchequer Alistair Darling, hosting a meeting of finance ministers from the Group of 20 nations, said his colleagues decided to keep supporting their economies. The G-20 agreed to keep interest rates low and maintain record budget deficits until recoveries take hold.

German industrial production surged 2.7 percent in September, topping the median economist forecast for 1 percent growth, according to a report from the Economy Ministry in Berlin today. A separate report showed German exports also rose more than economists forecast in September.

Allianz, Banks

Allianz rallied 4.3 percent to 82.70 euros as the insurer said third-quarter profit more than doubled to 1.32 billion euros ($1.98 billion), beating analysts’ median estimate of 1.25 billion euros, according to a Bloomberg survey.

The Munich-based insurer, led by Michael Diekmann, returned to profit in the first half after investment writedowns and the sale of unprofitable Dresdner Bank contributed to a 2.4 billion- euro loss for 2008.

“Allianz is looking better the longer it recovers from its Dresdner debacle,” wrote UniCredit Markets & Investment Banking in a report today. “Going forward, we see a rejuvenated insurer forging ahead with its global franchise and leading positions in major markets, while maintaining solid financials.”

Deutsche Bank AG and Commerzbank AG, the country’s largest lenders, climbed 3.4 percent to 49.82 euros and 5.8 percent to 7.35 euros respectively.

Puma added 4.5 percent to 232.94 euros after Chief Executive Officer Jochen Zeitz said the company expects to be “profitable” in the fourth quarter, adding that Puma “hopes” for an “improving business environment” ahead of next year’s soccer World Cup.

Adidas, Continental

The second-largest European sporting-goods maker today posted a 24 percent drop in third-quarter profit to 68 million euros, after the PPR SA unit cut prices to clear inventory that built up during the recession.

Adidas AG added 1.6 percent to 34.80 euros. The world’s second-biggest sporting-goods maker was raised to “buy” from “sell” at Societe Generale SA.

Continental advanced 5.2 percent to 38.49 euros after Citigroup raised its recommendation for Europe’s second-largest auto-parts maker to “buy” from “hold,” citing “raised earnings forecasts and greater prospects for a favorable debt refinancing.”

ThyssenKrupp AG and Salzgitter AG, the country’s largest steelmakers, climbed 2.6 percent to 23.46 euros and 2.5 percent to 64.54 euros, respectively, as metals gained in London.

The following stocks also gained or fell in the German market. Stock symbols are in parentheses.

Deutsche Boerse AG (DB1 GY) advanced 1.42 euros, or 2.6 percent, to 56.42 euros. Europe’s largest securities exchange is the only stock market operator to bid for a controlling stake in the state-owned Warsaw Stock Exchange. Rivals London Stock Exchange Group Plc, NYSE Euronext and Nasdaq OMX Group Inc., which were also invited for talks in the sale, didn’t place final offers by the Nov. 6 deadline.

Separately, HSBC Holdings Plc raised is price estimate for the shares by 2.8 percent to 73 euros.

GfK SE (GFK GY) gained 34 cents, or 1.5 percent, to 22.90 euros as the country’s largest market research group was raised to “buy” from “sell” at UniCredit.

Hannover Re (HNR1 GY) added 58 cents, or 1.8 percent, to 32.86 euros after Germany’s second-biggest reinsurer was raised to “neutral” from “underweight” at JPMorgan Chase & Co.

Hochtief AG (HOT GY) climbed 1.23 euros, or 2.2 percent, to 57 euros. The builder has made the necessary preparations to hold an initial public offering for its concessions unit at the end of November was raised to “buy” from “hold” at UniCredit.

Magix AG (MGX GY) jumped 60 cents, or 16 percent, to 4.40 euros. The maker of multimedia software said 2008/09 revenue and earnings before interest and taxes are “clearly up” from the previous year, according to preliminary figures.

Manz Automation AG (M5Z GY) slumped 2.75 euros, or 5.2 percent, to 50.37. The solar-cell machine maker posted a nine- month net loss of 11.5 million euros, compared with a profit of 14.1 million euros in the year-earlier period.

MorphoSys AG (MOR GY) increased 74 cents, or 4.3 percent, to 17.92 euros. The biotechnology company got clearance from Germany’s Paul Ehrlich Institute to start a clinical trial in patients with rheumatoid arthritis using its investigational MOR103 drug.

Pfleiderer AG (PFD4 GY) rose 35 cents, or 5 percent, to 7.42 euros. Chief Executive Officer Hans Overdiek said the German manufacturer of laminate flooring did better “in all respects” in the third quarter than in the preceding three months as raw-material prices declined.

Software AG (SOW GY) climbed 1.72 euros, or 2.5 percent, to 71.23 euros. Germany’s second-largest software maker had its share-price estimate lifted 6.9 percent to 77 euros at UBS AG.

Volkswagen AG (VOW GY) rose 1.74 euros, or 1.6 percent, to 110.92 euros. The carmaker’s Audi division lifted its annual sales target to 925,000 cars after October deliveries gained 0.4 percent. Ten-month deliveries declined 6.7 percent to 787,900 vehicles, “significantly better than forecast at the start of the year,” the company said today.

Wacker Chemie AG (WCH GY) advanced 2.90 euros, or 2.7 percent, to 110.85 as UniCredit lifted its recommendation for the chemical maker to “buy” from “hold.”

To contact the reporters on this story: Sarah Jones in London at sjones35@bloomberg.net; Julie Cruz in Frankfurt at jcruz6@bloomberg.net.

Last Updated: November 9, 2009 12:15 EST