Swiss-based (re)insurer Allied World’s net profit fell 40.4% to $US74.1 million ($95.7 million) in the March quarter as the weak reinsurance market hit revenues.

Overall gross written premium (GWP) fell 1.9% to $US863.5 million ($1.11 billion), pulled down by a drop in reinsurance GWP to $US368.8 million ($476.1 million) from $US439.3 million ($567.1 million) in the corresponding period last year.

GWP in North America fell slightly to $US379.2 million ($489.5 million) from $US380.8 million ($491.6 million), while the global market increased GWP to $US115.5 million ($149.1 million) from $US60.6 million ($78.2 million).

“The North American insurance segment was essentially unchanged, led by growth across programs and environmental businesses, offset in part by declines in primary casualty, healthcare and property businesses,” Allied World says.

The group’s combined operating ratio deteriorated to 96% from 88.1%. Allied World says it had no reportable catastrophe losses during the quarter.