Allianz’s general insurance business in Australia recorded stronger results in the second quarter, lifted by higher renewal rates and a drop in claim-related losses.

The business made an operating profit of €166 million ($275 million) in the June quarter, compared with €26 million ($43 million) a year earlier. Insurance revenue grew to €1.15 billion ($1.9 billion) from €1 billion ($1.65 billion) and the combined operating ratio improved to 87.8% from 98.4%.

Total business volume surged 13% to €1.49 billion ($2.5 billion) and Allianz says Australian renewal rates increased 10.6% in the six months to June.

The Australian business also benefited from strong improvement in the attritional loss ratio due to price actions and claims measures, as well as better run-off experience, the insurer says.

“Allianz Australia achieved strong premium growth of 13% in [the second quarter] compared with the same period last year,” it told insuranceNEWS.com.au. “This was driven by our retail and commercial classes and supported by both higher sales and premiums.

“Compared with [the second quarter last year], profitability has returned to underlying levels, assisted by a continuing strong investment performance and an improved attritional loss ratio as inflation pressures ease.”

At the group level, Allianz made a second-quarter operating profit of €3.9 billion ($6.5 billion) as all its segments including property and casualty, life and health performed well.

The second-quarter results took half-year operating profit to €7.9 billion ($13.1 billion).

“Allianz delivered strong results in the first six months of the year and we are confident in our ability to achieve our full-year ambitions,” CEO Oliver Bate said.

“These excellent property and casualty outcomes were complemented by strong delivery in our life and health, and asset management segments.”

Allianz says the business remains on track for an operating profit of €14.8 billion ($24.5 billion), plus or minus €1 billion.