Claims from natural disasters have wiped nearly $US1 billion ($925 million) from the full-year result of Bermuda-based insurer Catlin.

Bucking the trend of investment losses suffered by other insurance groups, Catlin increased the value of its portfolio but fell foul of natural catastrophe claims worth $US961 million ($894.5 million). Combined ratios rose to 102.6% for the year.

Profit before tax sank to $US71 million ($66.1 million) for the year, down from $US406 million ($377.9 million) in 2010.

CEO Stephen Catlin says the company remains in a strong position, with gross written premium up by 11% and an increased annual dividend to shareholders.

“Our structure is designed to perform in all phases of the market cycle,” Mr Catlin said.

“Market conditions are improving, especially for catastrophe-exposed business classes.

“While it may be too early to declare the market has turned, nearly all signs are encouraging.”

Catlin raised catastrophe-exposed insurance cover by an average of 9%. In the US, it increased property catastrophe reinsurance premiums by 17%, while global rates lifted by 12%.