Catlin’s earnings grew 29% to $US392 million ($434 million) last year, driven by business hubs outside London.

Gross written premium (GWP) increased 7% to $US5.31 billion ($5.87 billion), with the contribution from Bermuda, the US, Europe, Canada and Asia-Pacific rising 16% to $US2.84 billion ($3.14 billion).

“While it is clear competition is on the increase and that rates for most classes of business are coming under pressure, I believe there are still good opportunities for companies like Catlin,” CEO Stephen Catlin said.

“Our diversified portfolio, by region and by product, allows us to see business that many of our competitors do not have the opportunity to write.”

Mr Catlin says much of the new capacity entering the market is focused on property catastrophe risks, especially in the US, which represents a diminishing percentage of Catlin’s portfolio.

The group’s net underwriting contribution hit $US1 billion ($1.1 billion) last year for the first time, while the proportion from non-London hubs grew to 48%, compared with 33% in 2012.

GWP written by the London hub fell 2%, while the net underwriting contribution was virtually flat.

“This performance is in line with expectations, because our London underwriting team chose not to renew some business in light of the increased competition in the London wholesale market,” Mr Catlin said.

Catastrophe losses were $US156 million ($173 million), down from $US225 million ($249 million) in 2012.

The loss ratio improved to 52.3% from 56% and the combined operating ratio moved to 85.6% from 90%.