US speciality insurer WR Berkley has reported a steep rise in profitability in 2010, despite tough market conditions and a modest increase in gross written premium (GWP).

While GWP for 2010 only rose 4% to $US4.4 billion ($4.34 billion), net income soared 45% to $US450 million ($444 million), up from $US309 million ($305 million) in 2009.

For the fourth quarter of 2010, the company posted net income of $US127 million ($125.4 million), down from $US134 million ($132.3 million) in 2009, on GWP that rose 11% to $US1.1 billion ($1.09 billion), up from $US954 million ($942 million) in the fourth quarter of the previous year.

Chairman and CEO Bill Berkley says business growth in the quarter came mainly from business written outside the US, and that while rates remain relatively flat, the company was able to increase rates in some units.

“With the slowly improving economy, we have seen a modest increase in our exposure base,” he added.

But Mr Berkley maintains that rates are “unsustainably” low.

“Existing inadequate pricing combined with declining investment returns will result in an overall lack of industry profitability,” he said.