BEIJING - Ping An Insurance (Group) Company, China's second-largest insurance group on Tuesday reported a 27.9 percent increase in net profit to 9.87 billion yuan ($1.45 billion) during the first half, as it gained from higher premiums and growth in its other lines of business.

But the sluggish capital market took its toll on the company as return on assets slid to 3.7 percent in the first six months, compared with 4.7 percent during the same period last year, the company said in a statement to the Shanghai bourse.

Life insurance premium income during the period rose to 9.3 billion yuan, compared with 7.4 billion yuan in the corresponding period a year back.