Allianz says weather-related losses, mainly from floods in Europe, are to blame for a 46% drop in second-quarter net profit.

Catastrophe losses totalled about €500 million ($727.7 million) – about twice the second-quarter average of the past 10 years.

Losses from European floods and storms reached €300 million ($436.6 million) during the period.

The German insurer’s net profit for the three months to June 30 fell to €1.1 billion ($1.6 billion) from €2 billion ($2.9 billion) in the corresponding period last year.

Half-year net profit was 14.5% lower at €3.3 billion ($4.8 billion).

Operating profit fell 17.2% to €2.4 billion ($3.5 billion) and revenue eased 2.5% to €29.4 billion ($42.8 billion) in the June quarter.

Property and casualty operating profit fell 37% to €1.09 billion ($1.6 billion), gross written premium declined 2% to €11.6 billion ($16.9 billion) and the combined operating ratio deteriorated to 96.4% from 93.5%.

“The second quarter in particular was shaped by markedly higher damages from heavy floods and storms in Europe,” Allianz CEO Oliver Bate said.

“The good earnings growth in life and health insurance business could not fully offset the decline in the property and casualty segment.”

Life and health achieved an 18.3% rise in operating profit to €1.01 billion ($1.5 billion), despite a 2.6% drop in statutory premium to €16.3 billion ($23.7 billion).

Allianz maintains an operating profit outlook of €10.5 billion ($15.3 billion), plus or minus €500 million ($727.7 million), for the year.