Bermuda-based Hiscox says gross written premium (GWP) grew 3.3% to £1.75 billion ($3.42 billion) last year, thanks to premium growth in the US and record profits in the UK and Europe.

Hiscox USA GWP gained 24.1% to $US367.6 million ($472.52 million), with growth in professional liability products and the broker business in profit for the second year in a row.

However, group pre-tax profit fell 5.4% to £231.1 million ($452.66 million) in “difficult markets”, the company says.

“We have been able to grow profitably in insurance and position Hiscox Re sensibly, reducing premiums and attracting new capital in the face of tough conditions,” CEO Bronek Masojada said.

“The strategy of diversification we have pursued for decades means that, whatever the headwinds, we have the firepower to set our own course.”

Hiscox UK and Europe combined profits grew 29.9% to a record £73.3 million ($143.58 million), despite floods in the UK and hailstorms, windstorms and floods in Europe.

GWP gained 5.5% to £435 million ($852.1 million) in Hiscox UK and Ireland.

And the European business enjoyed an “excellent year”, growing GWP by 8.5% to €190.8 million ($270.38 million).

Early last year Hiscox paid $US55 million ($70.69 million) for DirectAsia, a direct motor and travel operation in Singapore, Hong Kong and Thailand. Its GWP increased 15.2% to $US29.5 million ($37.91 million) last year.

Hiscox Re reinsurance profits fell 18% to £105.6 million ($206.84 million), as revenues dropped 13.9% to £354.3 million ($488.74 million). Underwriting was scaled back as the operation maintained a disciplined response to the challenging pricing environment.