Ruralco says its general insurance business delivered “solid” growth in its first half, contributing to an overall rise in company earnings.

Net written premium increased 8% in the six months to March 31 and higher insured livestock values helped drive a 22% increase in insurance gross profit.

Ruralco’s overall net profit was $5.1 million, compared with a $500,000 loss in the previous corresponding period.

The financial services unit, which includes insurance, represented 7% of total gross earnings.

MD John Maher says company diversification has provided some protection against volatility in seasonal conditions and commodity prices.

“An increased contribution from the water trading, water solutions and insurance segments, as well as solid performances from the more traditional rural supplies and agency activities, is evidence of this,” he said.

Ruralco is an authorised representative of CGU Insurance.