Allianz Australia’s first-quarter operating profit has dipped to $54 million, down 26% compared with the corresponding period last year. Gross written premium of $589 million was down 6.8%.

The combined ratio for the three months to March 31 rose to 106% from 103.8%.

Globally, the Allianz group reported a 97% drop in first-quarter net profit to €29 million ($52 million), due largely to investment losses of €752 million ($1.35 billion) and a €395 million ($711.5 million) loss from the sale of Dresdner Bank.

First-quarter gross written premium for general insurance operations edged up – at €13.9 billion ($25 million), compared with €13.7 billion ($24.7 million) in 2008. However, a lower underwriting result dragged operating profit down 35% to €970 million ($1.75 billion). The group combined ratio rose to 98.5% from 94.8%.

Allianz group CFO Helmut Perlet says general insurance renewal prices are starting to rise after almost three years of soft markets.