Zurich’s business operating profit rose 7% to $US4 billion ($6.1 billion) in the first half and return on equity reached a record 25%.

Earnings were lifted by strong results from the life operations and the US Farmers subsidiary, while property and casualty delivered a “robust performance”, the group says. 

“Market conditions have remained more favourable than anticipated and we observe today many opportunities to profitably grow the business,” CEO Mario Greco said.

Property and casualty operating profit fell 1% in US dollar terms to $US2.22 billion ($3.38 billion), while it improved 3% on a “like-for-like” basis.

Increased insurance revenue and a strong investment result were partially offset by a higher combined operating ratio, which increased 0.7 percentage points to 93.6%, mainly driven by catastrophe losses.

In commercial insurance, gross written premium was stable amid an overall rate increase of 5% compared with the prior period. Retail GWP grew 10% supported by a rate change of 5%.

Zurich has closed its acquisition of a 70% stake in India’s Kotak Mahindra General Insurance, and has announced a deal to buy AIG’s global personal travel insurance and assistance business.

The overall Asia-Pacific business reported a $US260 million ($396 million) operating profit, up 9% on a like-for-like basis. Property and casualty revenues in the region rose 10%, with double-digit growth in retail.

Zurich says strong top-line momentum across markets, led by Malaysia, Indonesia and Hong Kong, and favourable investment income contributed to a strong underlying result in P&C, and the regional business reported a stable combined operating ratio of 93.7%.

“Looking ahead, we are well positioned to continue the robust development of the Asia-Pacific business, expanding our scale and presence in strategic high-growth markets and segments,” regional CEO Tulsi Naidu said.

The Zurich group’s overall net income attributable to shareholders rose 21% to $US3 billion ($4.6 billion).