Zurich Insurance Group has reported operating profit of $US2.24 billion ($3.05 billion) and net income of $US2.06 billion ($2.81 billion) for the six months to June 30 – decreases of 15% and 3% respectively.

CEO Martin Senn says there were “good results” in the global life and farmers segments, but general insurance profitability was “adversely affected by large losses” in the global corporate and UK operations.

General insurance gross written premium (GWP) and policy fees for the half dropped 7% to $US18.67 billion ($25.44 billion) and business operating profit crashed 31% to $US1.17 billion ($1.59 billion). The combined operating ratio deteriorated 2.6 percentage points to 98.3%.

Zurich says the disappointing result was “predominantly due to an increase in large losses in the UK and global corporate in North America, higher levels of catastrophe and weather-related losses and higher expenses”.

The company has yet to formalise its interest in acquiring British insurer RSA Insurance Group, but its results statement says it is “evaluating a potential offer”.

It has gone further than previously in discussing the merits of a deal.

“We believe a transaction could bring significant benefits to us and to our investors in terms of the complementary fit of RSA’s business with our own operations, and in financial terms,” Zurich says.

Analysts expect a takeover valuation for RSA of £5.5-£5.7 billion ($11.7-$12.09 billion).