Swiss-based insurer Allied World has reported a $US153.4 million ($205.27 million) profit for the second quarter, up from $US9.5 million ($12.7 million) in the corresponding period last year.

Its combined operating ratio for the quarter improved to 92.5% from 99.2%.

Gross written premium fell 3.1% to $US800.3 million ($1.07 billion).

Investment income for the second quarter increased to $US55.8 million ($74.65 million) from $US42.8 million ($57.26 million).

President and CEO Scott Carmilani attributes the result to strong performances across the underwriting and investment portfolios.

“In particular, with a combined operating ratio of 92.3%, our North American insurance business is showing the strength and results of our focused buildout,” he said.

The North American insurance segment’s profit fell 1.8% to $US508.4 million ($680.32 million), dragged down by declines in property and casualty, which were partially offset by growth in programs and other specialty lines.

Profit for the global markets insurance segment dropped 7.1% to $US125.4 million ($167.75 million), hit by falls across multiple lines in the European business. This was partially offset by Asia-Pacific business.

The reinsurance segment’s profit fell 4% to $US166.5 million ($222.67 million), driven by declines in property, while catastrophe losses in the second quarter were $US20.9 million ($27.94 million), compared with $US25 million ($33.43 million) in the corresponding period last year.