Allianz’s property and casualty earnings from Australia slumped 32% last year after a substantial fourth-quarter catastrophe impact.

Australian operating profit fell to €350 million ($581 million) as the fourth quarter recorded a €100 million ($166 million) loss, a regional breakdown released with the global results shows.

Catastrophes during the final quarter cost €300 million ($498 million).

Business volume grew 2.8% to €5.18 billion ($8.6 billion), but rate gains on renewals slowed to 6.1% from 11.3%.

Allianz says the Australian top line was supported by price and volume, with the retail business driving growth.

Globally, the property and casualty result rose 13.9% to €8.99 billion ($14.92 billion) last year and the combined operating ratio improved 1.3 points to 92.2%. The division was the main driver of group result. 

Operating profit including the property and casualty, life and health, and asset management divisions gained 8.4% to €17.4 billion ($28.94 billion).

“Even though we have seen ... some cat activities in Australia in the last quarter, our nat cat experience was better this year compared to 2024,” Allianz CFO Claire-Marie Coste-Lepoutre told an analysts’ briefing.

CEO Oliver Bate says Allianz is looking to deploy artificial intelligence to improve customer services and remove bottlenecks, such as when claims surge after hailstorms.

Mr Bate has dismissed the recent sharemarket sell-off among commercial lines brokers, noting some countries require incorporated companies to receive professional advice.

“The question of who is liable for advice, who is liable for hallucination, is a very important question,” he said.

But there may be benefits for consumers in using large language models, rather than price-focused comparison websites, and there could be an increasing flow to strong brands offering value and service, he says.

“I personally believe that consumers will be empowered to ask a lot more questions and get a lot more important answers than they can get ... today. It will put a lot of pressure on us to do one thing really well – that is to offer differentiated value to consumers.”