Talanx says first-half net income rose 9% to €1.5 billion ($2.4 billion), supported by profit growth from all divisions and an improved investment result.

The company, which includes HDI Global and Hannover Re, now expects to significantly exceed its full-year forecast of €2.7 billion ($4.4 billion).

“Our strong operations, continued high level of resilience and large loss payments that were nearly half a billion euros below budget make us extremely upbeat for the rest of the year,” chairman Torsten Leue said.

Insurance revenue was flat at €24.26 billion ($39.6 billion), while the combined operating ratio improved to 88.7% from 90.7% a year earlier.

Winter Storm Fern in the US and Canada, and Atlantic storms on the Iberian Peninsula and in Morocco were the largest natural disaster loss contributors. Other events included the Venezuela earthquake and thunderstorms and floods in the US and Canada.

The German group has recognised reinsurance reserves of €200 million ($326 million) for potential losses relating to the Iran war.

A previous switch from low-yield to higher-yield investments helped the net insurance financial and investment result climb 21% to €1.025 billion ($1.67 billion), before currency effects.

Corporate and specialty division insurance revenue was stable due to currency impacts and more cautious new business underwriting, and the insurance service result rose 8% to €465 million ($759 million).

Reinsurance division insurance revenue eased to €12.9 billion ($21.1 billion) from €13.3 billion ($21.7 billion). The insurance service result climbed 23% to €1.7 billion ($2.8 billion).