Allianz has reported a 24% profit increase to €1.7 billion ($2.19 billion) for the first quarter, and says it is on track for an operating profit of €9.2 billion ($11.85 billion) this year.

“The improvement in our results comes from all our business segments, so it is broad-based,” Chairman Michael Diekmann told the annual general meeting in Munich last week.

Allianz expects slight earnings growth in property and casualty (P&C) but believes life and health will slip slightly on lower investment income.

The asset management arm will find it difficult to maintain the exceptionally high performance fees earned last year, Mr Diekmann says.

The €550 million ($708.55 million) loss reported by US P&C insurer Fireman’s Fund is a “crushing disappointment”, following about €230 million ($296.3 million) of losses from Superstorm Sandy and €160 million ($206.12 million) from crop failures in the US drought.

Allianz estimates the new IAS19 accounting standard will shave €3.2 billion ($4.1 billion) off shareholders’ equity, push its solvency ratio down 16 percentage points and affect how operating profit is reported.

Under the changes, last year’s operating profit would be €9.3 billion ($11.98 billion).

Australian and Latin American P&C achieved above-average growth last year, Mr Diekmann says.