Ansvar Australia made a net profit of $2.84 million last year amid “competitive market conditions”, CEO Warren Hutcheon says.

The faith-based insurer’s net profit was £3.84 million ($7.33 million) in 2014.

However, gross written premium (GWP) grew 4% in local currency terms to $76.2 million, and the combined operating ratio was 102.3%, compared with 106.2% in 2014.

The business made an underwriting loss of $754,000.

“The premium increase was driven by a 40% increase in new business volumes resulting from the ongoing focus on improving relationships, building the brand and enhancing the value proposition, which resonated with customers and distribution partners,” Mr Hutcheon told insuranceNEWS.com.au.

UK parent Ecclesiastical Insurance Office says the Australian business was hit by “a higher-than-average number of catastrophe events during the year, which was an issue for the whole Australian market. However, the reinsurance arrangements in place reduced the impact of these losses to a manageable level.”

Ecclesiastical Insurance Office’s net profit grew to £46.62 million ($88.2 million) last year from £40.32 million ($76.3 million) in 2014.

“We have delivered another set of extremely positive results despite volatile investment markets, high levels of property claims and severe weather events,” Group CEO Mark Hews said. 

“Our focus on maintaining underwriting profitability and reshaping the business has transformed performance over the past three years.” 

GWP fell to £308.2 million ($583 million) from £328.8 million ($622 million) and net investment returns decreased to £43.23 million ($81.8 million) from £46.2 million ($87.4 million).

The group’s underwriting profit increased to £15.9 million ($30 million) from £10.7 million ($20.3 million) – its best result for six years.

The combined operating ratio strengthened to 92% from 95.2%.