Specialty insurer Brit has reported a net profit of £139 million ($273 million) for last year, up 39.7% on 2013.

The insurer, which listed on the London Stock Exchange last April, recorded gross written premium of £1.3 billion ($2.6 billion) for the year, up 9.8%.

A combined operating ratio of 89.5% was achieved “despite a challenging rating environment”, the company says. The ratio deteriorated from 85.4% in 2013.

Group CEO Mark Cloutier says Brit is on target to become “the leading global specialty insurer”.

The result follows the February 17 announcement that Canadian insurer and reinsurer Fairfax Financial Holdings will acquire Brit for $US1.88 billion ($2.39 billion).

Mr Cloutier says the deal – now subject to regulatory approvals – presents Brit with “an exciting opportunity to continue our story on an even stronger footing”. 

“The combination will enable us to enhance our global product offering and provide us with expanded underwriting opportunities and distribution channels,” he said.