Specialty insurer and reinsurer Catlin says gross written premium (GWP) grew 12% to $US1.84 billion ($1.84 billion) in the first quarter, driven by business growth and rate rises.

Net premiums earned increased 12% to $US948 million ($949.9 million), and no catastrophe losses were incurred in the three months.

“We have made a very good start to the… underwriting year,” CEO Stephen Catlin said.

“While the rest of the year may not be catastrophe-free as the first quarter was, we are optimistic the global infrastructure we have built over the past decade and our emphasis on capital preservation will continue to benefit our clients and shareholders alike.”

Total GWP from the non-London/UK underwriting hubs grew 21% on the first quarter last year, accounting for 58% of group GWP.

Asia-Pacific, Europe and Canada reported GWP of $US498 million ($499 million), up 26%, while the US posted $US356 million ($357 million), rising 18%.

Average rates grew 3% for both catastrophe-exposed and non-catastrophe business classes.

GWP increased in all product groups except aerospace, which fell 8% to $US78 million ($78.2 million) amid competitive conditions and satellite launch delays.

Casualty GWP was up 25% to $US330 million ($330.6 million) on growth in US and international business and marine liability rate rises.

Property increased 23% to $US158 million ($158.3 million), driven by growth in international property business and some rate increases after Superstorm Sandy.

Catlin Re Switzerland increased volume, contributing to a 15% rise in reinsurance to $US903 million ($904.9 million).

The total investment return to March 31 was 0.5%, or $US48 million ($48.1 million), down from 0.6% in the first quarter last year.

Yields on high-quality bonds remained at historical lows, but signs of a positive outlook led to higher equity values and the appreciation of other risk assets, the group says.