Tokio Marine has posted a net profit of ¥125.99 billion ($1.37 billion) for the quarter to June 30, up 8.4% on the corresponding period last year.

Improved US economic conditions and efforts to raise the property and casualty and life divisions offset a drop in underwriting income to ¥897.24 billion ($9.78 billion) from ¥946.35 billion ($10.32 billion).

Underwriting expenses fell to ¥775.2 billion ($8.45 billion) from ¥830.49 million ($9.06 billion).

Tokio Marine says the “world economy gradually improved” in the quarter, and in Japan “while the recovery of consumer spending remained weak, the economy continued to recover gradually”.

The Japanese insurer’s net claims payout fell to ¥383.69 billion ($4.18 billion) from ¥410.01 billion ($4.47 billion) and investment income grew to ¥172.46 billion ($1.88 billion) from ¥150.01 billion ($1.64 billion).