Allianz, Europe’s biggest insurer, said second-quarter profit rose 11 per cent, helped by lower natural-disaster claims and higher earnings at the life and health insurance unit.

Net income rose to €1.76 billion from €1.59 billion a year earlier, the Munich-based company said in a statement today.

Floods in Central Europe had cut year-earlier earnings by about €330 million,

Allianz said at the time. “The impact from natural catastrophes was lower compared to the high level of the second quarter of 2013,” Allianz said.

That helped increase operating profit at the property and casualty insurance unit, typically the most important in terms of earnings, by 14 per cent to €1.35 billion.

Earnings at the life and health insurance unit advanced 47 per cent to €984 million. Allianz reaffirmed a target for total operating profit of €9.5 billion to €10.5 billion this year, adding that the upper end of the range would be “in reach.” The insurer has a possible change in guard coming up at the end of the year, when the current contracts of six management board members expire.

The contracts, which may also be extended, include that ofchief executive Michael Diekmann, who has held the top job since 2003.

Allianz said in February that it expects the supervisory board, headed by Helmut Perlet, to decide on the composition of the future management board in October.

Asset Management Shareholders also expect Allianz to give more details about its future payout plans later this year.

Allianz paid a dividend of €5.30 a share for 2013, or 40 per cent of profit. It has said it may reconsider its current policy of spending 20 per cent of earnings each on internal growth, external growth and shift of investments into “real assets,” while paying out the rest as dividend.

Bloomberg