Zurich’s property and casualty (P&C) arm has recorded vastly improved first-half earnings, as significant rate gains helped offset elevated losses from extreme weather events.

The P&C division more than doubled its business operating profit to $US1.6 billion ($2.2 billion) in the six months to June 30 from a year earlier.

Gross written premiums and policy fees advanced 16% to $US22 billion ($30 billion) while the combined ratio improved six points to 93.9%, its lowest in more than 20 years.

“The reduction was driven by an underlying improvement in underwriting profitability, as higher prices feed into the results, as well as a favourable net impact from COVID-19 compared with the adverse impact recorded in the prior-year period,” Zurich said.

“All regions contributed to the combined ratio improvement.”

At the group level, Zurich says overall business operating profit improved 60% to $US2.7 billion ($3.7 billion) and net income surged 86% to $2.2 billion ($3 billion).

“We achieved outstanding results in the first six months of 2021 with profits back to the levels of 2019, when we reported our best first half in a decade,” Group CEO Mario Greco said.

“This is a remarkable achievement considering the elevated natural catastrophe losses in the period and the ongoing public health crisis.”