Allianz has become the latest global insurer to suffer a drop in profits due to the recent natural catastrophes in Australia and New Zealand.

The company reported a 6.9% fall in property/casualty operating profits during the first quarter of 2011 to €663 million ($885 million) compared to €712 million ($950 million) in the corresponding period last year.

Catastrophes in Australia and NZ cost Allianz €697 million ($930 million) compared to the rest of the world total of €40 million ($53 million).

This compared to €555 million ($740 million) in the first quarter of 2010.

Allianz SE CFO Oliver Bate says natural catastrophe costs reached new levels this year.

“The past quarter took one of the hardest hits from natural catastrophes of any quarter in the last two decades,” he said.

“However, this effect was partly offset by operating improvements in several core markets, positive price effects on renewals and stable investment income.”

Gross written premium for this year’s first quarter was €14.3 billion ($19 billion), up 1.8% on the 2010 first quarter.

In Australia gross premiums were up 6.8% to €542 million ($732 million) for the first quarter.

Allianz says the strongest growth came from the retail and transport business lines.

The operating profit for Australia in the first quarter was €23 million ($30 million) compared to €20 million ($26 million) in the corresponding 2010 period.

Allianz’s life and health insurance business saw a decrease in premium income, down 7.1% to €14.3 billion for the first 2011 quarter.

Operating profit for the division was also down, recording a 15.9% fall to €702 million ($937 million) compared to €835 million ($1.1 billion) in the first quarter of 2010.

“We are on track in the life/health segment, despite challenges such as tough competition in France, Italy and the Asia-Pacific region and exchange rate effects based on the strong euro,” Mr Bate said.

“This quarter’s operating profit keeps us at the upper end of our target range for the full year.”

Asia Pacific premiums were €1.4 billion ($1.8 billion) for the 2011 first quarter compared to €1.6 billion ($2.1 billion) in the corresponding 2010 period.

Operating profit for Asia Pacific was €37 million ($49 million) compared to €51 million ($68 million) in 2010.