Liberty Mutual has posted a 5% increase in profit to $US1.83 billion ($2.34 billion) for last year.

The US mutual insurer’s Chairman and CEO David Long says “deliberate underwriting actions and solid investment results” led to a 16% rise in operating income, despite higher catastrophe losses and continued low interest rates.

Disaster losses grew 27% to $US1.61 billion ($2.06 billion), driven by Cyclone Oswald, a German hailstorm and severe storms in the US, UK and Ireland.

Revenue increased 3% to $US39.63 billion ($50.65 billion).

The Global Specialty division, which includes Australian operations, increased pre-tax operating income by 6% to $US537 million ($686.36 million).