Property and casualty insurers' and reinsurers' 2013 first-half profitability grew compared to the same period in 2012, but the current pricing cycle may be reaching its peak, a new report says. 

Fitch Ratings says in its Special Report, "Property/Casualty Insurers' Midyear 2013 Financial Results," that its universe of 47 P&C insurers and reinsurers reported an overall net profit of $27.8 billion for 2013's first half, a 14.9 percent increase over the same period a year ago. The group benefitted from improved underwriting results due mostly to below-average catastrophe losses and growth in earned premiums compared to the first six months of 2012.

However, Fitch notes that the sector's results remain below previous hard-market underwriting profitability. The ratings agency adds that further improvement in profitability going forward may be challenging as rate increases are slowing and reinsurance price competition is intensifying.