Ecclesiastical Insurance has reported a £27.6 million ($40.1 million) profit for last year, driven by strong returns on investments.

It follows a £3.2 million ($4.7 million) loss in 2011.

Gross written premium (GWP) was £481.3 million ($700.6 million), down 0.6% from £484.2 million ($704.8 million).

This reflects a withdrawal from the New Zealand market by the UK insurer, which also owns Australian insurer Ansvar.

GWP is expected to fall further next year as Ecclesiastical pulls out of the motor market.

“Growth has been low this year [because] we have focused on taking action to improve the profitability of our underwriting business, rather than pushing for growth in soft markets,” the company says.

The general insurance business reported a loss of £24.6 million ($35.8 million), while investments contributed £56.6 million ($82.4 million) profit on strong results from corporate bonds and equities.

The Anglican Church-affiliated insurer’s total revenue was £429.3 million ($624.7 million), up 8% on 2011.

Its combined operating ratio was 108.5%, a decline from 105.4% in 2011 following higher reinsurance costs and increased UK and Ireland liability claims.

The Australian general insurance operation reported an underwriting loss of £5.2 million ($7.6 million). This follows a 2011 underwriting loss of £11.8 million ($17.2 million), driven by floods and cyclones that year.

The region has been affected by high reinsurance costs after recent disasters. The company has reduced its catastrophe exposure, resulting in a lower reinsurance cost this year.

Ecclesiastical also refocused the Australian business and completed the exit from personal lines.