Allianz says net profit increased 11% to €1.82 billion ($2.56 billion) in the first quarter, thanks to strong premium growth in property and casualty (P&C) and a record profit in life and health.

Total revenue gained 11.2% to €37.8 billion ($53.29 billion) in the three months to March 31.

“Allianz achieved very good results in the first quarter compared with last year’s already strong first quarter,” CFO Dieter Wemmer said.

“While it is a promising start, the challenge of the current low interest rate environment remains. However, we are well prepared for the rest of [the year].”

P&C gross written premium gained 13.9% to €17.34 billion ($24.44 billion) on strong growth from Allianz Global Corporate & Specialty, Allianz Worldwide Partners and business in Germany and Latin America.

Operating profit fell 13.7% to €1.28 billion ($1.8 billion) in the quarter, due mainly to “substantially higher” claims from natural catastrophes, which cost €222 million ($312.96 million).

European storms Elon and Felix in January and Niklas and Mike in March affected results.

The combined operating ratio deteriorated to 94.6% from 92.6%.

In life and health, operating profit passed €1 billion ($1.4 billion) for the first time, rising 25.5% to €1.1 billion ($1.55 billion), driven mainly by stronger investment results.

Life and health statutory premium grew 9.7% to €18.82 billion ($26.52 billion) for the quarter.

“The results of the first quarter reflect a continued diversification of our life products,” Mr Wemmer said.

Operating profit in asset management fell 14% to €555 million ($782.46 million), due mainly to higher third-party net outflows.

Allianz has confirmed its full-year operating profit outlook of €10.4 billion ($14.66 billion).