Specialist insurer Beazley increased profit by 23% to $US264 million ($294.71 million) last year, but says Australian operations contributed to a loss in its life, accident and health division.

The group has responded with significant rate rises in Australia.

The Dublin-headquartered insurer increased gross written premium 5% to $US1.97 billion ($2.2 billion), while investment income fell 48% to $US43 million ($48 billion).

Its combined ratio improved to 84% from 91% in 2012 and was the lowest since Beazley went public in 2002.

Competition in the reinsurance market pushed the reinsurance bill down 17% to $US293.7 million ($327.86 million).

Beazley’s reinsurance arm more than trebled pre-tax profit to $US90.7 million ($101.25 million) and marine was steady at $US83 million ($92.65 million).

The company says war and piracy rates have fallen sharply due to fewer attacks off the Horn of Africa, but the Costa Concordia loss has triggered rises generally.

Profit from specialty lines fell 31% to $US53 million ($59.17 million) and the life, accident and health division made a pre-tax loss of $US17.9 million ($19.98 million).

CEO Andrew Horton says fewer catastrophes helped the result but lines not exposed to catastrophes also performed well.