WR Berkley says first-quarter net profit fell to $US119.5 million ($157.5 million) as higher catastrophe loss and expenses ate into earnings.

The US-based commercial lines writer made a net profit of $US118.3 million ($155.9 million) in the corresponding period last year.

Gross written premium grew to $US1.96 billion ($2.6 billion) from $US1.85 billion ($2.4 billion) and investment income increased to $US130.1 million ($171.4 million) from $US124.2 million ($163.6 million).

The combined operating ratio improved slightly to 93.5% from 93.9%. Catastrophe losses increased to $US15.6 million ($20.6 million) from $US14.5 million ($19.1 million).

“Both our underwriting and our investment results were favourable, as we continued to take advantage of opportunities provided by the current environment,” the company says.

“While certain aspects of the market may be more competitive today than just a short time ago, we see a meaningful number of opportunities that may potentially create long-term value for our shareholders, and we are optimistic about the remainder of the year.”