Hannover Re’s net profit grew 19.7% to €531.9 million ($791.1 million) in the first half, driven by better reinsurance and investment results across the group.

The company says a “very successful” renewal season in Australia has contributed to profit guidance for the full year being raised to €950 million ($1.41 billion) from €875 million ($1.3 billion).

“Both business groups – namely property and casualty and life and health reinsurance – and also the investment portfolio played a successful part in this positive result,” CEO Ulrich Wallin said.

“The sustained strong profitability of property and casualty reinsurance shows that with our systematically pursued policy of selective underwriting, we are well placed to tackle the conditions associated with challenging market phases.”

Gross written premium (GWP) increased 21.5% to €8.6 billion ($12.78 billion). At constant exchange rates, the gain would have been 9.5%.

In P&C, where treaty renewals took place on June 1 and July 1 in North America and Latin America, the environment remains challenging.

“This was also the main renewal season for business in Australia,” Hannover Re said. “The outcome here proved very successful for Hannover Re as it secured an increased market share with long-standing clients.”

Growth in property and casualty (P&C) reinsurance came partly on a rise in the US dollar.

P&C reinsurance GWP increased 21.9% to €5 billion ($7.43 billion). At constant exchange rates, growth of 10% would have been booked.

“While supply still outstripped demand in worldwide P&C reinsurance, the first signs of bottoming out began to emerge here on the rates side,” Hannover Re said.

The group’s combined operating ratio deteriorated slightly to 95.4%, from 95%.

Net premium grew 20.2% to €7 billion ($10.41 billion) in the half, which at constant exchange rates would have been 8.3%.

Life and health reinsurance net profit gained 26.2% to €145.6 million ($216.53 million) on strong growth in the longevity portfolio and more opportunities in South America, Australia and Asia.

Ordinary investment income was €598.7 million ($890.58 million), up from €490.1 million ($729 million) in the first half of last year, despite continued low interest rates.

“This can be attributed in part to the special effect in life and health reinsurance, along with sharply higher earnings from fixed-income securities and real estate, as well as exchange rate effects.”

Net major loss expenditure for the first half was €197.4 million ($293.55 million), compared with €104.7 million ($155.7 million) in the corresponding period last year.

The largest individual losses followed windstorm Niklas in Europe, costing €35.4 million ($52.65 million), and an explosion on an oil rig in the Gulf of Mexico, at €32.9 million ($48.93 million).

This financial year the group aims to grow GWP by 5-10%.