ST GALLEN, Switzerland (AFX) - Helvetia Patria Holding reported a first half net profit of 162.9 mln sfr, up from a restated figure of 116.4 mln last year, beating the consensus forecast, driven by continued growth in the non-life segment and a 39.9 pct rise in its life business.

'As part of our business strategy for the years 2007-2010 we will aim to maintain our high profitability level and to achieve above average growth,' said chief executive Erich Walser.

Gross premiums, however, reduced slightly by 1.2 pct to 3.227 bln sfr, falling somewhat short of the consensus, citing weaker market conditions in Switzerland and Italy.

Premium income in the non-life direct insurance business increased by 1.8 pct in the period. Non-life profit, at 110.3 mln sfr, once again made the biggest contribution to group profits.

During the first half, Helvetia's investment portfolio increased by around 69 mln sfr to 27.9 bln sfr, while the overall investment structure changed only minimally.

While the weighting of fixed-interest securities decreased for interest-related reasons, the weighting of real estate and mortgages increased, the insurer said.

Despite low interest rates, interest and dividend income rose to 352.6 mln sfr, from 345.2 mln, with Helvetia Patria citing a larger investment volume, an increase in dividend income and a longer duration of bond investments.

The direct rate of return on interest and dividend income rose for the first time in many years, it said, and amounted to 1.64 pct for the first half of 2006.

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