The higher dollar boosted the local operations of Allianz Global Assistance last year as more Australians travelled abroad, prompting its parent company to earmark Australia and New Zealand as growth markets.

The Australia/NZ business produced $19.5 million operating profit, compared with $9 million in 2010.

Allianz Global Assistance Australia/NZ CEO Ian Norris says revenue from the travel business grew 12% as more people took advantage of the higher dollar to travel. He believes the business now accounts for more than 50% of the travel market.

“However, the highest growth came from health and lifecare at 21% on 2010 results, despite a downturn in the number of foreign students attending Australian universities and colleges on study visas,” he said.

Mr Norris told insuranceNEWS.com.au he expects student numbers to recover over the next 12-18 months due to an easing in visa requirements.

He says the travel insurance market is very competitive but there are some good airline deals around to encourage travel. Although new car sales are down, most of Allianz’s roadside assistance arrangements are with prestige motor companies that have maintained sales.

Parent company Allianz Global Assistance reported €2 billion ($2.55 billion) turnover, up 8.5%, of which the Australia/NZ business contributed $340 million, making this region the third-largest contributor to group profit after France and the US.

Mr Norris says the local business achieved a combined ratio of 95.2%, compared with 96.8% for its parent.

“In just six months as a part of the broader Allianz Global Assistance Group, the Australian and New Zealand entity has already proven its worth on a difficult world stage, making a significant contribution to overall profitability and growth,” he said.