Hannover Re’s property and casualty (P&C) reinsurance arm posted a 37.4% rise in first-half underwriting profit to €204.7 million ($319.9 million), with catastrophe losses below expectations.

Net expenditure on large losses was €93.3 million ($145.80 million), about €258 million ($403.2 million) lower than was provisioned for.

Operating profit grew 8.6% to €688.8 million ($1.08 billion), but net income decreased 2.1% to €434.4 million ($678.9 million) due to higher tax charges.

Gross written premium surged 19.2% to €6.5 billion ($10.2 billion) on increased demand for structured reinsurance solutions in Europe and North America, plus rate rises in traditional reinsurance. The P&C combined operating ratio improved to 95.7% from 96.5%.

Overall net income, which includes life and health plus investment results, was up 3.8% at €555.3 million ($868 million).