Allied World has posted a net profit of $US255.2 million ($332.29 million) for last year, up from $US83.9 million ($109.24 million) in 2015.

The result comes before the group is taken over by Fairfax Financial Holdings, which will acquire outstanding shares worth about $US4.9 billion ($6.38 billion), including a $US5 ($6.51) per share special dividend to be paid by Allied World.

Allied World’s combined operating ratio deteriorated to 96.2% last year from 95.1%.

Gross written premium totalled $US3.06 billion ($3.98 billion), down from $3.09 billion ($4.02 billion). Net investment income increased 19.2% to $US217.78 million ($283.56 million).

Fourth-quarter net catastrophe losses of $US49.9 million ($64.97 million) were dominated by Hurricane Matthew in the US and November’s New Zealand earthquake.

Fairfax is expected to complete its acquisition in the second quarter of this year.