Allianz says net profit grew 26.8% in the second quarter as property and casualty (P&C) earnings increased.

Net income was €1.59 billion ($2.37 billion), up from €1.25 billion ($1.86 billion) in the corresponding period last year.

Second-half earnings increased 25.3% to €3.3 billion ($4.9 billion).

“Although we faced record floods in central Europe, persistent low interest rates and erratic capital markets, our business continued to grow profitably.” CEO Michael Diekmann said.

Second-quarter P&C operating profit grew 12.3% to €1.2 billion ($1.8 billion) after strong contributions from Australia, France, Italy and the US.

Favourable prices helped raise the underwriting result to €357 million ($537 million) from €234 million ($349 million).

The second-quarter combined ratio improved to 96% from 97.2% in the corresponding period last year.

The net impact of the June floods in central Europe was about €330 million ($492 million) after reinsurance.

Allianz has received claims from more than 50,000 customers and has settled more than 32,000.

Australian gross written premium increased to €767 million ($1.14 billion) from €737 million ($1.1 billion), and operating profit was up to €133 million ($198 million) from €104 million ($155 million).

Allianz life and health insurance operating profit fell 18.2% to €669 million ($997 million) on a weaker investment result in Germany.

The group says full-year operating earnings are likely to be near the upper end of its forecast range of €9.2 billion ($13.7 billion), plus or minus €500 million ($745 million).