Ace Insurance has posted a slight increase in gross written premium (GWP) and a decline in net income in the second quarter.

The company says the results are ahead of plan despite a slowing global economy.

Net income for second quarter 2012 was $US328 million ($313 million), down 45% from second quarter 2011.

But net income for the six months to June 30 was $US1.3 billion ($1.24 billion) compared with $US844 million ($806 million) in the first half of 2011, a 54% jump.

Ace Chairman and CEO Evan Greenberg says the company’s premium growth rate has been accelerating this year.

“We are benefitting from strong, broad-based growth, both geographic and product, along with an improving P&C price environment globally,” he said.

“For the first time, pricing in our international P&C operations in aggregate turned positive, whereas for our US business, rates continued to rise, up 4.7% on average for the quarter.”

GWP rose 4% to $US5.65 billion ($5.4 billion) in the second quarter. For the six months to June, GWP increased 4% to $US10.4 billion ($9.9 billion).

North American insurance accounted for the largest share of GWP in Q2, at $US2.86 billion ($2.73 billion).

Non-US general insurance operations GWP was $US1.95 billion ($1.86 billion), global reinsurance $US332 million ($317 million) and life insurance $US513 million ($490 million).

Catastrophe losses in the first half of the year have been lower than planned, Ace says. Total after-tax catastrophe losses were $US41 million ($39 million) in the second quarter, compared with $US101 million ($96 million) last year.

The property and casualty combined ratio was 88.7% compared with 92.7% last year.

Mr Greenberg says Ace is optimistic about the rest of the year, with some exceptions.

“Drought conditions in the US are impacting our crop insurance business and will affect our earnings in the second half of the year,” he said.

“At the same time, we are mindful of the economic and political headwinds – beginning with the eurozone crisis and the US fiscal cliff.”