Swiss Re has reported a second-quarter net income of $US1.3 billion ($1.83 billion), taking its first-half profit to $US2.83 billion ($4 billion).

The reinsurer says the 9% rise in half-year profit means it is “well on track” to achieve its $US4.5 billion ($6.36 billion) net income goal for this year.

Underwriting profit increased 15% to $US3.5 billion ($4.95 billion), buoyed by solid results from the property and casualty reinsurance unit and Corporate Solutions commercial arm.

P&C Re delivered an 18% rise in first-half net income to $US1.45 billion ($2.05 billion) and 16% surge in underwriting profit to $US1.82 billion ($2.57 billion).

“Strong underwriting performance was supported by low large natural catastrophe experience,” Swiss Re said. “P&C Re achieved a combined ratio of 76.7% for the first half … and is on track to reach its target of less than 85% for the full year.”

Group CEO Andreas Berger says P&C Re continues to focus on “disciplined underwriting and active cycle management … and Corporate Solutions is selectively expanding in strategic growth markets.

“We also continue to improve efficiency across Swiss Re and are announcing a more ambitious cost reduction target.”

Corporate Solutions made a half-year net income of $US490 million ($693 million), up 14% on a year earlier, and underwriting profit improved 12% to $US578 million ($818 million).

“The continued strong result reflects the high quality of the portfolio, favourable prior-year claims development and lower than expected natural catastrophe experience,” Swiss Re said.

Life and health reinsurance net income grew 21% to $US1 billion ($1.41 billion) and underwriting profit was 24% higher at $US1.16 billion ($1.64 billion).

Swiss Re says all three business units are “delivering on their objectives” but notes there are challenges from the Middle East conflict.

“At the same time, we remain vigilant as we approach the peak of the hurricane season amid a volatile geopolitical and economic environment.”

The reinsurer says it has raised its operating cost reduction target to $US500 million ($707 million) by 2028, against a previous goal of $US300 million ($424 million) by next year.

“The increase reflects strong progress towards Swiss Re’s previous reduction target … as well as further opportunities to simplify how the group operates, focusing on non-client-facing teams.”