Allianz Australia earned gross premiums of €737 million ($863 million) from property and casualty in the second quarter, including €46 million ($54 million) from “favourable currency translation”.

“We achieved strong growth of 7.2% thanks to both volume and price increases in our property business through agent and broker distribution channels,” the Allianz group says in a commentary on its Australian operation. The positive price effect was around 5.2%.

Allianz Group reported a six-month profit to June 30 of €2.77 billion ($3.24 billion), up 39% on the corresponding period last year, helped by rate increases across most lines of property and casualty as well as fewer catastrophes.

Gross written premium from property and casualty rose 4.4% to €25.5 billion ($29.9 billion) and operating profit rose 15.5% to €2.3 billion ($2.7 billion). The combined ratio fell 1.3 points to 96.8%.

Premiums from life and health fell 2.5% to €25.6 billion ($30 billion), but operating profit rose 19% to €1.6 billion ($1.9 billion) due to a higher investment result.

CEO Michael Diekmann says the group is on track to deliver a full-year operating profit of around €8.2 billion ($9.6 billion).

The operating profit for the first half was €4.96 billion ($5.8 billion).

Mr Diekmann says that since July 1 severe thunderstorms in Europe and China have caused the group losses of around €100 million ($117 million), and the ongoing drought in the US could lead to losses in its crop business.