WR Berkley expects an improving environment will lift earnings this year, building on a “solid start” in the first quarter.

Net profit grew 35% to $US166.4 million ($219.7 billion) in the quarter as investment returns improved and pricing mostly strengthened.

“The market is slowly moving in the right direction and we anticipate these trends, and consequently our results, will improve further during the remainder of the year,” the company says.

Gross written premium (GWP) in the group’s main insurance business grew 3.8% to $US1.84 billion ($2.43 billion), with steady price improvement each month. Reinsurance GWP fell 15.2% to $US141.5 million ($186.9 million) in an exceptionally competitive market.

The combined operating ratio eased to 94.6% from 95.7%, including 0.5 loss ratio points from catastrophes and 0.7 loss ratio points from non-catastrophe weather.

Investment income increased 17.2% to $US174.5 million ($230.4 million), including an 11.3% gain in the core portfolio.