Lloyd’s insurer and reinsurer Amlin has reported a slump in first-half profit after European floods pushed up catastrophe losses.

Net profit was £140.2 million ($243.3 million) in the six months to June 30, down from £168.9 million ($293.1 million) in the corresponding period last year.

Large catastrophe losses were £32.2 million ($55.9 million) compared with a benign first half of last year.

Gross written premium grew to £1.84 billion ($3.19 billion) from £1.81 billion ($3.14 billion), while the combined ratio moved to 85% from 84%.

Trading conditions improved for the UK commercial book, while US and international catastrophe rates eased from peaks earlier in the year.

Intense competition in the capital reinsurance market led to renewal rates on the June US catastrophe business falling by an average of 14.9%.

“While the renewal rate reduction moderated for the July renewals, we anticipate further downward pressure on catastrophe rates into [next year] unless there is significant loss activity in the second half,” Amlin said.

CEO Charles Philipps is optimistic about the full-year result. “There are positive trends in a number of our businesses, which will counteract downward pressure on catastrophe reinsurance rates, and this reinforces the benefit of our diversification strategy.”