The position of Chartis, the former AIG property and casualty business, continues to improve with the company posting an operating profit for the second quarter after a first-quarter loss.

It recorded an operating profit for the second quarter of $US789 million ($752.4 million), compared to $US955 million ($910.7 million) for the same period last year, despite $US539 million ($514.1 million) of catastrophe losses.

Its second-quarter catastrophe losses comprised $US348 million ($331.9 million) from the US tornadoes, $US84 million ($80.1 million) from the Mississippi floods and other storms, and $US54 million ($51.5 million) from June’s Christchurch aftershock.

In a positive sign, Chartis did not report any movement in prior year loss reserves, or further developments on its first-quarter catastrophe bill. 

Premium income for the quarter rose a modest 2.4% on a like-for-like basis.

The Chartis figures were reported as part of the financial results of its parent company AIG, which unveiled a net profit of $US1.8 billion ($1.7 billion).

Allianz reported an operating profit of €2.3 billion ($3.1 billion) for the second quarter, matching its result for the second quarter last year.

The company says this was in spite of “burdens from the euro debt crisis and currency fluctuations”. 

But those issues did affect its net profit, which came in at €1.07 billion ($1.5 billion), 7% below 2010 levels, with writedowns of €326 million ($446 million) on Greek sovereign bonds and adverse currency movements.

It recorded premium income of €24.6 billion ($33.7 billion), 3% down on the same period of 2010.

For the first half of the year, revenues at Allianz fell 3% on the first half last year to €54.5 billion ($74.6 billion), for a half-year profit of €2 billion ($2.7 billion), down 28% on the comparable period.

Allianz CEO Michael Diekmann says the company’s geographic and business segment diversification “is keeping us at stable profitability levels”.

 He described the results as “remarkably solid” given catastrophe losses and market uncertainty.