Swiss Life posted a larger-than-expected rise in H1

Swiss Life on Wednesday posted a larger-than-expected rise in half-year profit despite trimming back business in its core life insurance operations. Insurer Group reported that its first-half net profit increased 5% from last year to 524 million Swiss francs.

Swiss Life said net profit rose 5 percent to 524 million Swiss francs ($538.8 million), ahead of expectations for 514 million francs in a Reuters poll of eight analysts.

In the six months, premiums were 10.0 billion francs, down 1% in local currency.

Swiss Life said it increased its new business margin to 2.6% in the first half from previous year's 1.5%. All the business units, mainly Swiss Life Switzerland, contributed to the very strong result.

"In the first half of 2017, we managed to further strengthen our earnings power and, in particular, to expand our fee business," Chief Executive Patrick Frost said in a statement.

"We are ahead of schedule in implementing our group-wide programme 'Swiss Life 2018' and the sustained and consistent orientation of our business towards profitability and capital efficiency enabled us to again improve our profit sources."