Allied World says third-quarter net profit fell to $US30.9 million ($35.2 million) from $US122.8 million ($139.7 million) amid increased catastrophe expenses and lower underwriting income.

The company reports $US29.8 million ($33.9 million) of catastrophe losses related to Hurricane Odile in Mexico and Windstorm Ela in western Europe.

Underwriting income fell to $US45 million ($51 million) from $US80.1 million ($91.2 million) in the corresponding period last year, while the combined operating ratio deteriorated to 91.7% from 84.2%.

Gross written premium increased to $US707.9 million ($805.6 million) from $US580.9 million ($661.1 million), driven by growth in the US, international and reinsurance segments.

Allied World says it is realigning its insurance business into a North American division – including the US, Canada and Bermuda – and a global markets division for other operations. The reinsurance segment will remain unchanged.

“We continue to see attractive opportunities for selective organic growth,” President and CEO Scott Carmilani said. “The strategic changes to our management team and reorganisation of our segments will better align us with our clients and position us well for continued opportunities.”