Lloyd’s insurer and reinsurer Amlin has returned to profit in the half-year to June 30, after a performance last year that was its worst since 2001.

It has posted an after-tax profit of £169 million ($255 million), compared with a loss of £151.5 million ($229 million) for the first half last year.

Its combined operating ratio recovered to 84%, compared with 122% a year ago, allowing its underwriting profit to recover to £153.8 million ($232.5 million) from a loss of £203.8 million ($308.2 million) in the previous corresponding period.

A disastrous catastrophe experience dragged the 2011 results down but Amlin says it suffered no major catastrophes in the first half of this year and no material movement in its prior-year catastrophe claims over the period.

Gross written premium grew 20% to £1.8 billion ($2.7 billion) on an average rate increase of 4.2% across its book of business, which includes marine, aviation, energy, catastrophe reinsurance and property and casualty.

CEO Charles Philipps says underwriting conditions are “in stark contrast” to the previous year and more than 80% of the book is now benefitting from rate improvements.

“The improving trading environment is creating many opportunities for profitable growth, for which we have both the capital and the underwriting capability to take advantage,” Mr Philipps added.