US insurers delivered strong earnings growth in the second quarter, mostly due to lower catastrophe losses.

Ratings agency Moody’s says industry profits were up 58% on the corresponding period last year.

Combined ratios improved as rate increases outpaced losses, and investment income grew 3%.

Although most insurers have reported healthy rate rises across all lines, some recorded a slight slowdown in commercial property and large accounts.

Some had lower retention ratios because they are becoming more selective about risk, Moody’s says.

Commercial lines rate momentum is expected to remain positive, although increases will be limited by the market’s plentiful capacity.