Allianz Australia has given some solid evidence of a hardening market after growing its quarterly property and casualty gross written premium (GWP) by 10.1% to €458 million ($735 million) during the third quarter due to “significant” price increases.

The figures to September 30 compared with the corresponding period last year show premium rises initiated from the middle of last year are beginning to pay off for the global insurer’s local operations.

It says volume grew strongly, mainly driven by motor and household lines.

The combined ratio improved to 98.3% from 100.2%, while operating profit dipped 26% at €49 million ($78.6 million).

Across the group, improved investment returns and the completed sale of Dresdner Bank saw Allianz book net profit of €1.3 billion ($2.1 billion) for the September quarter, compared with a €2 billion ($3.2 billion) loss last year.

Property and casualty GWP was down 2% to €10.2 billion ($16.4 billion). The group says a positive price impact was achieved on revenues despite soft markets, although disciplined risk selection led to lower overall premium volumes.