Bermuda-based (re)insurer Arch Capital has posted a fourth-quarter profit of $US62.4 million ($81.39 million), up from $US53.1 million ($69.27 million) for the corresponding period in 2015.

Gross written premium (GWP) for the  quarter was $US1.15 billion ($1.5 billion), up 8.3%  on the corresponding period last year, while the combined ratio deteriorated slightly to 90.7%.

In the insurance segment growth in travel and construction lines led to a 4% increase in gross written premium for the fourth quarter to $US707.51 million ($916.93 million).

Catastrophes such as Hurricane Matthew led the company’s loss ratio to increase 5.5 percentage points to 67.7% in the quarter, compared with the corresponding period of 2015.

GWP for the reinsurance segment improved 5.4% to $US276.59 million ($358.37 million) for the quarter, while the combined operating ratio deteriorated to 78.6% from 74.3%.

Arch’s acquisition of the United Guaranty Corporation in the final quarter negatively affected the annualised return on average common equity, which was 3.9%.

Arch’s full-year net profit was $US664.66 million ($861.19 million), up 28% on 2015 and its combined ratio deteriorated slightly (0.4%) to 89.9%.