Allied World made a total of profit of $80.3 million in the first three months of this year.

The figure was up $6.2 million on the $74.1 million recorded in the first quarter of last year and equal to 90 cents per share, compared to 81 cents per share for the same period in 2016.

Scott Carmilani, president and CEO of Allied World, said: “Despite a challenging market environment, I am pleased with our ability to produce an annualised net income return on average shareholders’ equity of 8.9 per cent this quarter, while growing diluted book value per share by 2.8 per cent from year end 2016.

“Additionally, we have made great strides within the global markets insurance segment which generated a 14.4 percentage point improvement over the prior year period as we are beginning to reap the benefits of the strategic re-underwriting of this segment.

“Looking ahead, I feel that we are well-positioned for continued growth in our core specialty business.”

The company, in line to be taken over by Fairfax Financial Holdings, notched up gross premiums written of $860.9 million, a decrease of 0.3 per cent on the $863.5 million for the first quarter of 2016.

The company report said that was driven by growth in the North American insurance segment, partially offset by decline in the reinsurance segment, which saw a 5.6 per cent decrease, caused mostly by the reduction in property casualty risk, as well as the non-renewal of some property and casualty treaties.

The quarter saw $11 million in catastrophe losses related to Cyclone Debbie, compared to no major catastrophe losses in the same period of 2016.

The $11 million total represented $7.5 million in the reinsurance segment and $3.5 million in the global markets insurance segment.

The firm recorded net investment income of $52.3 million, $1 million down on quarter one last year.