Bermuda-based Arch Capital rebounded from a catastrophe-affected third quarter to post a stronger earnings result in the final three months of last year.

Net profit grew to $US203.5 million ($256.5 million) in the quarter to December 31, compared with $US62.4 million ($78.6 million) in the corresponding period of 2016.

Gross written premium (GWP) rose 25.7% to $US1.4 billion ($1.8 billion), lifted by gains in the mortgage business. GWP from the insurance segment increased 8.5% to $US767.5 million ($967.4 million) and reinsurance GWP grew 4.6% to $US289.3 million. ($364.6 million).

The group’s combined operating ratio improved to 86.3% from 90.2%. Net investment income grew 42% to $US99.6 million ($125.5 million).

Full-year profit declined to $US566.5 million ($714 million) from $US664.7 million ($837.8 million) in 2016 after the third-quarter result was hit by a “significant level” of catastrophe events.