Allianz Group says its property and casualty (P&C) arm made an operating profit of €1.4 billion ($2.2 billion) in the second quarter to June, up 18.8% from a year earlier.

Higher claims from natural catastrophes were largely compensated by a better run-off result, the insurer said.

The P&C underwriting result increased significantly also due to the absence of COVID-19 related losses compared to the prior-year period while operating investment income grew slightly.

“I am pleased by the continuous focus on underwriting discipline and productivity in our property-casualty business segment,” CFO Giulio Terzariol said.

“While we witnessed in the second quarter a high level of natural catastrophes which continues in the third quarter, I am confident in a healthy operating profit contribution of the property-casualty business segment to the group results.”

The P&C arm achieved gross written premium of nearly €13.5 billion ($21.6 billion) during the quarter, up 3.1% from a year earlier while the combined ratio improved to 93.9% from 95.5%.

The Australia P&C business increased its June quarter operating profit to €58 million ($93 million) from €52 million ($83 million) a year earlier while net premiums earned rose to €701 million ($1.1 billion) from €615million ($983 million).

At the group level Allianz reported an overall net income of €2.2 billion ($3.5 billion), up 45.7% from a year earlier.