Allianz has experienced a third-quarter property and casualty operating profit decline in Australia, while revenues were supported by pricing gains, according to figures released with the international group’s results.

Operating profit fell 17.4% to €86 million ($140.6 million) and revenues rose 1.6% to €765 million ($1.25 billion). Revenues rose 2.4%, excluding foreign currency and any acquisition or disposal impacts.

The combined operating ratio increased 1.2 percentage points to 91%, with improvements in the loss ratio offset by a deterioration in the expense ratio.

Investment income was lower, while the accident year loss ratio improved as favourable underlying development more than offset higher natural catastrophe costs, it says.

Australia featured price-driven growth, with gains in property more than offsetting lower volume in motor.

The Munich-based company reported overall net profit rose 5.9% to €2.1 billion ($3.4 billion) in the third quarter due to a stronger investment result, while property and casualty operating profit was little changed at €1.3 billion ($2.1 billion).

“I am pleased by the resilience of our underwriting profitability” CFO Giulio Terzario said. “Excluding COVID-19 effects, we see good underlying improvements in the combined ratio.”

Underwriting was affected by the COVID-19 pandemic and a “clearly lower” contribution from run-off, but the effects were largely offset by lower claims from natural catastrophes.

Overall, the combined operating ratio deteriorated by 0.2 percentage points to 94.5%. Revenues fell 1.8% to €12.9 billion ($21.1 billion).

Nine-month net profit for the company deteriorated 17.6% compared to a year earlier to €5 billion ($8.2 billion), while operating profit in property and casualty fell 16.6% to €3.5 billion ($9.3 billion).

Allianz says after a short period of economic recovery, many governments have intensified measures to limit a renewed increase in COVID-19 infection rates, and given the uncertainty, it is discontinuing a previously suspended share buyback program.