Promina has reported a 6% increase in net profit to $229 million for the six months to June 30, but its insurance premium margin fell 1.6% short of the industry expectations of 13%.

Net earned premium for Australia’s fourth-largest insurer grew 8.9% to $1.4 billion, while gross written premiums climbed 10% to $1.6 billion.

Speaking at a press conference after the profit announcement, MD and CEO Mike Wilkins would only commit to an insurance margin of above 10% for the full year and said the first half of this year had been affected by severe weather across several states, which added $77 million to claims.

Personal insurance classes accounted for 67% of the insurer’s business in the first half, up from 64%. Commercial lines dropped to 33% from 36%.