Zurich has reported net income of $US1.85 billion ($2.01 billion) for the first half of this year, down 17% from $US2.23 billion ($2.43 billion) in the corresponding period last year.

Its general insurance gross written premium grew 3% to $US19.8 billion ($21.55 billion) and the combined ratio was 95.6%.

“We delivered these results in a period characterised by natural catastrophes and large weather-related events, including severe flooding in eastern and central Europe, tornadoes in Oklahoma and an unusual number of mid-sized, weather-related events in the US, Canada and Europe,” CEO Martin Senn said.

“The economic environment remains challenging, with continued low interest rates exerting pressure on our investment income.”

Losses from the European floods of May and June were estimated at $US140 million ($152.35 million), while the Oklahoma tornadoes in May will cost about $US52 million ($56.59 million).

Zurich Global Life “maintained profitability” and showed further strong growth in target markets including the Asia-Pacific region.