Allianz UK is intent on gaining what CEO Andrew Torrance called "sensible" rate rises in commercial lines, after Allianz UK posted a gross operating profit of £36.7m for Q1 2010, down £4.4m on the same period last year. The decline was due mainly to higher weather-related claims and a deterioration in investment returns. Gross written premiums in the UK were up 4.4% to £411.3m. Commercial business rose 5.3% year on year to £237.3m, while retail business was up 3.3% to £174m. The combined ratio fell to 96.5% from 96%, with retail falling by 1pp to 101.7%. Commercial combined ratio rose 2pp to 92.6% Mr Torrance said that, providing there were no further major weather catastrophes this year, Allianz UK was well placed to deliver its profit plan for 2010. Achieving rate rises in the commercial lines market remained the insurer's primary focus. "We are not there yet," said Mr Torrance. "All of our commercial underwriters are very focused on this goal and we want our broker partners to work with us to ensure that the rates put to policyholders reflect the exposures we are taking on." Mr Torrance said that price rises were being pushed through on the "unprofitable" broker motor account, but admitted that household cover was "regrettably...not yet hardening in the same way". Rates were failing to reflect the more frequent significant weather events, such as the Cumbrian floods and the UK winter freeze, now being experienced, he said.