Ace Insurance has reported a 41.7% rise in first-half earnings, driven by its accident underwriting results and strong growth in North America, Asia and Latin America.

Net income grew to $US1.84 billion ($1.98 billion) in the six months to June 30 from $US1.3 billion ($1.4 billion) in the corresponding period last year.

Operating earnings in the second quarter were a record $US790 million ($852 million).

First-half gross premium written grew 5.3% to $US10.99 billion ($11.85 billion).

Ace says its second-quarter property and casualty (P&C) combined ratio of 87.9% benefitted from margin improvement and global premium growth.

“The primary commercial P&C pricing environment in the US remains favourable and, in fact, we experienced our strongest quarter yet for casualty-related rate increases in our retail business,” Chairman and CEO Evan Greenberg said.

Ace says economic conditions remain mixed worldwide, but it expects “continued strong results for the balance of the year”.

The company has forecast $US7.65 to $US8.05 ($8.25 to $8.68) per share in after-tax operating income for the year. This includes estimated after-tax catastrophe losses of $US260 million ($280 million) for the second half.