Global insurer and reinsurer Catlin has posted a 6.6% rise in net profit to $US418 million ($541 million) for last year, fuelled by higher premium earnings.

It is the Bermuda-based company’s last financial result announcement as an independent business before being taken over by XL Group later this year.

Gross written premium (GWP) increased to $US5.97 billion ($7.71 billion) from $US5.31 billion ($6.86 billion) in 2013.

Net underwriting contribution fell to $US991 million ($1.28 billion) from $US1 billion ($1.29 billion).

Catlin’s non-London business remains a key earnings contributor, generating 54% of GWP last year.

CEO Stephen Catlin says the takeover by XL Group is a win-win that will lead to a “more efficient underwriting” company.

“The acquisition would bring together two highly compatible cultures based on an underwriting-first mentality,” Mr Catlin said. “Catlin for 30 years has been building a business for the future, and we would continue to do so as part of a new, dynamic organisation.”

XL Group announced the cash and share deal valued at £2.79 billion ($5.54 billion) last month. It is due to be completed in the middle of this year.