Specialist property and causality insurer Catlin attributes its 13% increase in net premium earned to a jump in volumes and high rates on business written last year.

The London-based specialist insurer says the increases are the result of embedded growth from the 2006 acquisition of Wellington Underwriting.

Gross written premium for the quarter to September 30 surged 9% to $US3.28 billion ($3.31 billion).

Although the London hub recorded a 2% drop from $US1.9 billion ($1.92 billion) to $US1.8 billion ($1.8 billion), the remaining centres recorded strong results.

The company’s Bermuda business rose 23% and the US business 24%, while the international sector – including Catlin’s Australian operations – recorded the biggest increase of 45%.

The group says the drop in the London market was due to a continued reduction in the volume of business underwritten in the wholesale market because of competitive conditions for certain classes of business.

Property proved to be strong with a 26% rise in premiums, while reinsurance (14%) and speciality/war and political risk (17%) also showed strong returns.

Group CEO Stephen Catlin says the group is on track for a good full-year result despite losses from the Chilean earthquake and Deepwater Horizon oil rig explosion.

“While the rating environment is also challenging, we believe there are still good margins available for many classes of business,” he said.