Swiss-based (re)insurer Allied World has reported an 83% plunge in net profit for last year, as tough business conditions hit underwriting income.

Net profit fell to $US83.9 million ($118.6 million) from $US490.3 million ($693.2 million) in 2014, and underwriting income declined to $US120.4 million ($170.2 million) from $US322.7 million ($456.2 million).

Gross written premium grew to $US3.1 billion ($4.4 billion) from $US2.9 billion ($4.1 billion) and the combined operating ratio deteriorated to 95.1% from 85.2%.

CEO and President Scott Carmilani says steps taken to bolster the business, including expansion in Asia, will lift performance this year.

“[Last year] was a challenging year, marked by a difficult underwriting environment and financial market volatility,” he said. “With the close of the Asian acquisitions and targeted growth in our insurance segments, I believe our franchise is well positioned.”