Promina Group has outperformed expectations since its successful initial public offering last year. The top-five insurer has announced a net profit of $204 million for the six months to June 30, a 51% increase on the previous corresponding period.

CEO Mike Wilkins attributes the result to strong investment returns, a low number of claims and an unexpectedly good performance in life insurance and funds management.

The group’s general insurance division improved its performance by 31%, recording a profit of $144 million for the period. It says an increase in gross written premium of almost 5% to $1.4 billion is indicative of a commitment to maintaining underwriting disciplines and technical prices.

Mr Wilkins says benign weather contributed to Promina’s result, with the group reporting a claims ratio improvement from 67% to 65.4%.

Return on equity was reported at 17.5%, and earnings per share increased by 52% to 19.3 cents. Net earned premium increased more than 10% during the period to $1.314 billion.

Mr Wilkins says Promina’s direct general insurance divisions, including AAMI and Australian Pensioners Insurance, achieved higher policy growth than last year. Direct home and motor customers maintained their policies with the insurer because they were impressed by the minimal inflation of premiums.

Vero – Promina’s intermediated general insurance division – continued to gain brand recognition through Australia and New Zealand, and benefitted from growth in niche classes.

Asteron, Tyndall and New Zealand Guardian Trust – Promina’s financial services companies – recorded a 61% improvement in profit to $53 million.

Mr Wilkins says Promina has upgraded its full-year forecast and remains committed to being a specialist-focused, trans-Tasman insurance and financial services organisation.

Ratings agency Standard & Poor’s (S&P) was suitably impressed with Promina’s result, lifting its credit rating on the group’s general insurance operation from A to A+.

S&P analyst Paul Clarkson says questions on the group’s viability when it split with British parent Royal & SunAlliance last year are a thing of the past. “The ratings upgrade reflects the group’s continued earnings growth and its strong underlying financial and capital strength.”