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Allianz Australia profit falls as parent reports 65% drop

Global insurer Allianz has recorded a 65% decline in net profit to €1.1 billion ($1.8 billion) in the first quarter, confirming a weak first quarter for global insurers.

Its Australian arm saw operating profit in the period fall 18% to $68 million.

Allianz Australia’s combined ratio worsened by 1.4 percentage points to 103.8%, while gross written premium declined slightly to $583 million.

Property and casualty net profit globally declined 10% to €1 billion ($1.7 billion) while net profit from life and health lines dipped 18% to €452 million ($751 million).

There were better results in other areas of Allianz’s property and casualty book.

International operating profit improved 16.7% to €1.5 billion ($2.5 billion), while the combined ratio moved from 96.8% to 94.8%.

Poor results among Allianz’s banking division dragged down the wider result, with a €538 million ($894 million) loss attributed to big markdowns from its Dresdner Bank subsidiary.