Vienna  - Uniqa Versicherungen AG, one of Austria's largest insurers, said Friday its net profit slipped by 3.5 per cent to 109 million euros (161 million dollars) in the first half of 2008, as falling income from investments outweighed growing premiums.

The insurer reported the value of its written premiums had grown 10.4 per cent to 3 billion euros in the first six months of this year, compared with the same period of the previous year.

Business in Eastern and South-Eastern Europe was booming, Uniqa said, with premiums written in that region rising 60 per cent to 603 million euros.

The region contributed 20.1 per cent to group premiums, up from 13.9 per cent in the first six months of 2007.

However, falling income from investments dampened Uniqa's results. Net investment income declined by 57.3 per cent to 195 million euros.

Falling stock markets, rising interest rates, and the spread increase in the fixed-income portfolio had a negative influence on investments, Uniqa said.

"Assuming a stabilisation of the capital markets and no exceptional negative underwriting effects, we expect a profit for the full year of 2008 in the range of 230 to 250 million euros," Uniqa CEO Konstantin Klien said, referring to profits before taxes.

In 2007, Uniqa made 230 million euros in profits, excluding the 110 million euros the company earned from selling its shares in the construction group Strabag AG. (dpa)