Allianz says Property & Casualty (P&C) price and volume in Australia were both positive in the second quarter as its global P&C business volume rose 8% to €17.62 billion ($29.61 billion). 

Group-wide, total business volume rose 6% to €39.6 billion ($66.54 billion). The main contributors to the increase were “Allianz Partners, Australia, Latin America and Germany,” Allianz said. 

In Australia, second quarter volumes in P&C were €1.32 billion ($2.22 billion), up 4%, while six months rate changes on renewals were up 8.6%, only overtaken by rate increases in the UK, at 17%, and Allianz Partners, at 11.6%. The increase in Australia in 2022 was 9.9%. 

Allianz says in Australia, price and volume were both positive, with strong rate increases in retail and commercial, though the combined ratio worsened as the loss ratio deteriorated on inflationary pressures negatively impacting the retail business.  

Inflation impacted retail business in Australia and the UK in particular, the insurer says. 

Operating profit rose 7% to €3.8 billion ($6.39 billion) while P&C operating profit increased 11% to €2 billion ($3.36 billion). The combined ratio improved by 0.4 percentage points to 92.2% as the loss ratio improved to 67.4%, benefiting from lower claims from natural catastrophes. 

CEO Oliver Bäte says the first half results are “excellent” and Allianz is on track for a 2023 operating profit of €14.2 billion ($23.86 billion), “plus or minus €1 billion”. 

"With our double-digit growth in profits we are well on track to achieving our group targets for the year,” he said. 

“I am particularly pleased by the strong performance in the Property & Casualty business. 

“We achieved strong rate increases and continue to take actions to successfully offset inflation. The performance in commercial lines was outstanding as a result of solid pricing momentum and strong underwriting discipline.”