Zurich Financial Services today beat expectations with a 33 per cent rise in first-half net profit.
Net profit was $2.684 billion, the group said, beating the average expectation of $2.493 billion in a Reuters poll of 11 analysts. The year-earlier comparative was slightly adjusted to $2.011 billion because of accounting changes.
Zurich's Irish operation Eagle Star, reported operating profits of €26 million in the first six months of the year, up from €23 million the same period last year.
The group, itself the target of takeover talk, said it would continue to buy rivals but would not say if it was looking at UK insurer Friends Provident, whose planned merger with Resolution has been thrown into question by a rival bid.
Zurich in May raised its financial targets, saying it wanted to be one of the world's top five insurers. But markets are questioning its growth plans, and the company has so far been hesitant in acquisitions, unlike some of its peers.
Zurich had invested $340 million in US sub-prime debt and $479 million in collateralised debt obligations, but it said it saw no problems with this type of investment, which is at the heart of the credit market turmoil.
Premiums in general insurance were $19 billion, up 3 per cent, but flat in local currencies. Life insurance premiums - on an annual premiums equivalent basis - rose 12 per cent, or 5 per cent in local currencies.