Bermuda-based insurer Catlin Group wrote more business in the first quarter of the year, but premiums written through its Bermuda operation fell 16 percent.In its interim management statement, the company said it had seen higher rates, especially in catastrophe-related business and expected that trend to continue through the remainder of the year.“It is gratifying that the market is heading in the right direction for nearly all classes of business after last year’s unprecedented series of catastrophe losses,” Catlin CEO Stephen Catlin said.“I am also pleased to report that rates for Japanese reinsurance renewals at April 1 were slightly ahead of our expectations. We expect market conditions to continue to improve as the year progresses.”Catlin incurred nearly $1 billion in gross losses from natural catastrophes in 2011.The company said the average weighted premium rate increase for catastrophe-related business was ten percent and one percent for non-catastrophe business.Although Catlin reported no losses from natural disasters in the first three months, it took a net hit of around $35 million from the Costa Concordia cruise ship grounding in January.Gross premiums written by the group totalled $1.64 billion, compared to $1.46 billion in the same period of 2011.Three of the underwriting hubs recorded double-digit increases. with gross premiums written climbing 12 percent in the UK, 17 percent in the US and 27 percent in the International hub, which includes Catlin’s operations in Asia, Europe and Canada.The trend was different for the Bermuda unit, as gross premiums fell to $185 million from $219 million a year earlier, a decrease of 16 percent. Catlin explained that the decrease “reflects the decision not to renew certain property reinsurance contracts whose rates did not meet the Group’s expectations”. The company added the capacity relating to those contracts is expected to be utilised later in the year.Catlin recorded a total investment return of 0.6 percent during the quarter and by the end of March had investments and cash of $8.41 billion, up four percent from $8.12 billion a year earlier.