London-listed insurer Beazley has reported a 2% rise in first-half gross written premium (GWP), but earnings slipped due to increased insurance claims.

GWP grew to $US1.12 billion ($1.48 billion), while profit before income tax eased to $US150.2 million ($197.1 million) for the period to June 30.

The combined operating ratio deteriorated to 90% from 86% in the corresponding period last year.

Beazley says the insurance industry is “awash with capacity” – particularly for catastrophe lines that can be packaged to appeal to a wide range of investors – and the company aims to rebalance its portfolio in favour of smaller business with healthier risk-adjusted margins.

The company’s locally underwritten US business, which has a small proportion of small and mid-sized clients, grew 20% in the period.

“Our business in the US continued to grow strongly in the first half, partially offset by continued premium rate declines for much of the large-risk business we underwrite in London,” CEO Andrew Horton said.

Beazley is also focusing on service delivery, and says 36 new underwriters joined the group in the first half, bringing expertise and relationships that will be critical to growth ambitions in the US, Europe and Asia.

The company returned its headquarters to London in April after nearly seven years in Ireland, but its reinsurance vehicle remains domiciled in Dublin.

Beazley says the Brexit vote last month is likely to complicate planning for many businesses based in London, but it does not envisage problems for its own operations.

“We do not expect the impact to be greatly disruptive, although the long-term macroeconomic repercussions of the vote are hard to predict.”