Zurich Insurance Group has posted a net profit of $US2.11 billion ($2.27 billion) for the first half, up 14% on the corresponding period last year.

CEO Martin Senn says the insurer has made “clear progress” towards achieving its 2014-16 targets.

“Much of the groundwork for future investment in priority markets, such as introducing better customer segmentation, has been completed.”

As part of its global “streamlining of the organisational structure”, Zurich sold its Russian retail business, exited Zurich-branded aggregator distribution in the UK and “largely completed” the restructure of the group – including shedding 670 positions – in the six months.

The general insurance business reported a “substantially improved” net underwriting result, reflecting favourable underlying losses and the absence of major catastrophe and weather-related losses.

A media report from Hong Kong says Zurich Australia’s premium income in the first half was $560 billion, compared with $649 million in the corresponding period last year. A spokesman is quoted as blaming the fall on a decrease in premiums and also the loss of “some large profitable business”.

However, a Zurich Australia spokesman told insuranceNEWS.com.au the report is based on US dollars, and the significant fall in the value of the Australian dollar since early 2013 “has had a major influence on the figures”. Australian premium is also converted at spot rates on the reporting date. 

“Considering both these impacts, Zurich Australia’s general insurance premium income, in Australian dollars, is flat to marginally below last year, which given the softer market condition reflects Zurich's disciplined underwriting approach.”

General insurance gross written premium (GWP) and policy fees grew 1% to $US19.96 billion ($21.49 billion).

Life GWP, fees and insurance deposits grew 9% to $US14.22 billion ($15.31 billion).

Zurich Australia says the group does not release results by region, but a spokesman confirmed the global restructure did not lead to job losses locally.