Zurich says restructuring charges contributed to its first-half net profit dropping 22% to $US1.61 billion ($2.05 billion), as the Swiss-based insurer moves to simplify its operations and improve its business focus.

General insurance gross written premium and policy fees fell 1% to $US18.52 billion ($23.55 billion), while the business operating profit grew 3% despite a higher level of catastrophe and weather-related events.

The general insurance combined operating ratio of 98.4% was little changed from the corresponding period last year, but an improvement from 103.6% for full-year 2015.

CEO Mario Greco, who took the helm in May, says the company has made significant progress over the past six months, with improvement in underlying performance in the second quarter, amid a challenging market environment.

“Reinvigorated underwriting discipline in general insurance has resulted in an improved attritional loss ratio,” he said. “Our efficiency program is beginning to deliver results and we have taken steps to strengthen our geographic footprint by enhancing our position in the US, Malaysia and Australia while exiting several positions where we saw limited potential.”

In June the company announced the sale of insurance businesses in Taiwan and Morocco, while the company said last month it is selling operations in South Africa and Botswana.

During the half-year it completed the acquisition of MAA Takaful in Malaysia and US crop insurer Rural Community Insurance Services.

In Australia it is acquiring Macquarie Group’s retail life insurance business.

In the second quarter Zurich’s net profit fell 12% to $US739 million ($940 million), while the business operating earnings improved 17%.

The total return on group investments was up 2% in the quarter.