Several European insurers recorded bumper first-half profits on Thursday, as customers burnt by a pandemic, war and a pick-up in natural catastrophes in recent years continue to face higher premiums on policies.

Higher interest rates have also given insurance investment portfolios a boost, industry sources say.

Germany’s Allianz beat forecasts with a 7.5 percent rise in second-quarter net profit and said it was on track to meet its full-year target, while Zurich Insurance posted record profit and said it would likely exceed its 2025 targets.

German reinsurer Munich Re also said it may exceed full-year guidance, and shares in Lloyd’s of London insurer Beazley hit record highs after its pretax profit nearly doubled and it lifted its outlook. Peer Lancashire also reported earnings that analysts said topped expectations.

“Market conditions have remained more favorable than anticipated and we observe today many opportunities to profitably grow the business,” Zurich chief executive Mario Greco said.

Insurers and reinsurers—who insure the insurers—faced unexpected claims as a result of the COVID-19 pandemic, wars in Ukraine and Gaza, and historically high losses from storms, hurricanes and wildfires.

After the initial bruising, many insurers raised premiums and axed policies that left them uncomfortably exposed to infectious diseases or places damaged by war, fire or flood.

Such moves have left many facing fewer costly claims and better positioned for any positive surprises.

Global commercial insurance rates rose for 26 straight quarters before steadying in the second quarter of this year, according to insurance broker and risk adviser Marsh.

“The claims experience in the first half of the year was better than we had anticipated,” Beazley CEO Adrian Cox told Reuters.

Beazley’s pretax earnings were 74% above the consensus forecast, according to Jefferies analysts, fueling a 12% jump in the FTSE-100 insurer’s share price.

Higher interest rates have also improved insurers’ investment positions, after punishing years of ultra-low or negative rates in the wake of the global financial crisis.

The pandemic has also increased demand for life insurance, industry sources say.

Insurers and reinsurers are retaining some caution, however.

Munich Re Chief Executive Officer Joachim Wenning was only prepared to say his firm was “somewhat more likely” to beat its full-year target after a strong first half, although it was being deliberately conservative.

“Who knows what the hurricane season will bring?” he said.

This year’s U.S. hurricane season is predicted to be very active. Tropical Storm Debby inundated coastal Georgia and South Carolina with a deluge of rain this week.

Concern about natural catastrophe losses hit Zurich’s share price, despite its better-than-expected financial performance, taking shares down 3%. Allianz shares rose 1.2%, Munich Re was off 0.8% and Lancashire dropped 2.3%.

Recent market volatility is also causing pause for thought, with Allianz CEO Oliver Baete calling public debt levels “really scary”.

(Writing by Carolyn Cohn; editing by Sinead Cruise and Mark Potter)