London-listed Beazley says gross written premium (GWP) grew 6% last year to $US2.2 billion ($2.86 billion) after a strong performance from its US business.

GWP increased at twice the pace of 2015, while profit after tax increased 1% to $US251 million ($326 million) and pre-tax earnings grew 3%.

“Our increased profits were driven by a higher investment return, but the bedrock of our success remains our underwriting performance, which generated a combined operating ratio of 89% in [the year] despite highly competitive conditions in many of our markets,” CEO Andrew Horton said.

He says the low incidence of catastrophe claims since 2011 and influx of capital into the market in recent years continues to put downward pressure on rates.

“If the relatively benign claims environment we have grown used to in recent years were to deteriorate, the consequences of writing risk at these rates would become even clearer,” Chairman Dennis Holt said.

“This is not Beazley’s approach. Our vision is to become, and be recognised as, the highest-performing specialist insurer.”

He says significant growth opportunities remain in the US and, on a smaller scale, in other markets outside London.

Beazley says Britain’s planned exit from the European Union will have limited impact on the company because less than 5% of its business is generated in mainland Europe and it has already planned to develop its presence in Dublin, to access more business on the continent.

“It is now clear that the hardship and psychological shocks caused by the 2008 financial crash and subsequent recession have… had major political repercussions that few expected,” Mr Holt said.