Swiss Re, the world’s second-largest reinsurer, wrote 10 percent less business during the July property and casualty contract renewal season as rates continued to decline, albeit at a slowing pace, it said on Friday.

First-half net profit fell 35 percent to $1.2 billion, after claims from natural disasters such as Australia’s Cyclone Debbie compounded the impact of falling prices and a resulting cutback in business the reinsurer was willing to write.

“In the first half of 2017, we reported a solid result – despite the challenging market environment and having paid significant claims in the aftermath of natural catastrophes,” Chief Executive Christian Mumenthaler said on Friday.

“While in the short term these drivers, especially the pricing pressures, are concerning and are being addressed, we are steering our company with long-term value creation in mind.”

The profit lagged market estimates, which averaged $1.35 billion in a Reuters poll of eight analysts.

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