LONDON (Bloomberg) - Bermuda-based Catlin Group plc., owner of the largest unit at the Lloyd's of London insurance market, said first-quarter revenue rose 17 percent as it cut the amount of income given up to reinsurers and premium rates rose.

Net written premiums climbed to $896 million in the first three months of the year compared with $767 million a year earlier, the company said on Friday in a statement. Premiums rose an average of six percent in the period.

"We still believe that the reduced capital levels within the industry combined with investment market uncertainty will cause rates to increase further," CEO Stephen Catlin said.

Catlin has fallen 15 percent in London trading this year, underperforming the FTSE ASX Nonlife Insurance Index, as it raised £200 million from shareholders to provide fresh capital. The insurer is joining rivals Amlin plc. and Hiscox plc. in boosting its ability to write more insurance policies as premium rates rise.

Losses incurred in the financial crisis and the hurricane season last year have reduced the amount of capital available to insurers to back policies, pushing up prices between five percent and 10 percent, according to analysts at Fitch Ratings.