German global insurer increased profit by 15% to €6 billion ($9.17 billion) in 2013, but CEO Michael Diekmann has flagged a challenging industry environment this year.

The property and casualty segment recorded a marginal decrease in gross written premium (GWP) to €46.6 billion ($71.29 billion) and operating profit rose 14% to €5.3 billion ($8.1 billion) despite catastrophe payouts from European storms and a lower investment result.

The combined operating ratio improved to 94.3% from 96.2% and Mr Diekmann says the businesses in Australia, France, Germany, Latin America and Turkey recorded strong premium growth.

Profits from life and health fell 8% to €2.71 billion ($4.15 billion) despite a 9% rise in statutory premiums to €56.8 billion ($86.9 billion), with Allianz saying currency and interest rate volatility plus restructuring in South Korea dragged on profitability.

The group profit was the highest since the global financial crisis and Mr Diekmann says it was made under difficult conditions such as “the sluggish progress of structural reforms in the Eurozone, the budget crisis in the US and the turbulence witnessed on the bond markets following the contradictory announcements by the US Fed in the summer”.

European floods and hailstorms cost Allianz €1.2 billion ($1.8 billion), up €500 million ($764 million) on 2012.

Its asset management arm boosted operating profit by 7% to a record €3.2 billion ($4.9 billion).

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