Zurich’s Australian property and casualty unit delivered a first-half business operating profit of $US70 million ($99.6 million), down from $US81 million ($115.3 million) a year earlier.

The drop reflected deteriorations in the loss ratio to 62.2% from 55.6% and combined operating ratio to 92.3% from 90%.

Gross written premium increased to $US784 million ($1.11 billion) from $US621 million ($882 million) and insurance revenue grew to $US718 million ($1.1 billion) from $US639 million ($909 million).

The Australian life business performed better, with BOP of $US70 million, compared with $US56 million ($79.7 million) a year earlier.

The Asia-Pacific P&C business, including Australia, achieved a 12% rise in BOP to $US202 million ($287 million) and 11% increase in GWP to $US2.3 billion ($3.27 billion).

Zurich says P&C growth in the region was broad-based across commercial and retail segments.

“Despite softening market conditions, APAC commercial insurance improved its trading performance and strengthened its middle market capability, adding new partnerships in cyber, crop and professional indemnity, as well as winning significant new business,” the insurer said.

“In retail, motor and SME portfolios underpinned growth, supported by ongoing distribution expansion.”

Zurich improved its overall P&C BOP 16% to $US2.8 billion ($3.98 billion) and GWP went up 7% to $US29.9 billion ($42.5 billion).

“Targeted growth and disciplined underwriting supported an attractive combined ratio of 92.7%,” the insurer said. “Natural catastrophe losses accounted for 1.9 percentage points of the combined ratio, broadly unchanged compared with the prior year.”