Operating profits grew by 17 per cent to $35 million (€26 million) at Eagle Star Life in the first six months of the year, parent company Zurich said yesterday.

This improvement was due to continued growth in management fees resulting from an increase in insurance deposits and premiums, Zurich said in its latest financial review.

Insurance sales at Eagle Star Life, as measured in terms of the annual premium equivalent (APE), grew by 40 per cent to $142 million in the six-month period to the end of June.

Zurich described new business growth in Ireland as exceptionally strong, and said this growth was driven by a new product launch, in addition to increased sales of existing products.

However, new business margins at Eagle Star Life slipped slightly from 23.7 per cent to 22.2 per cent. The parent group said this decrease was due to "investments in growth initiatives".

Overall, Zurich's net profit rose by 33.3 per cent to $2.7 billion, while operating profits grew by 12 per cent to €3.2 billion. "These excellent results reflect our ability to successfully leverage a strong balance sheet through disciplined underwriting, targeted growth and operational efficiency, particularly given the current global financial environment," Zurich's chief executive, James Schiro, said yesterday.

The group is headquartered in Zurich, Switzerland, and employs about 58,000 people serving customers in more than 170 countries.