Insurance and reinsurance firm Allied World Assurance posted operating income of more than double analysts’ estimates for the fourth quarter of last year.

The Switzerland-based firm with substantial operations in Bermuda reported operating income of $148.5 million ($1.51 per diluted share) for the last quarter of 2014.

Analysts predicted on average a 70 cents return per share — less than half what the firm achieved.

The figures compared to operating income of $74.5 million for the quarter of 2013, equal to 72 cents per diluted share.

Allied World notched up operating income for the whole of 2014 of $415.1 million ($4.17 per diluted share) — $51.1 million up on the previous year’s $364 million ($3.47 per diluted share).

Allied World president and CEO Scott Carmilani said: Allied World had an excellent fourth quarter and full year.

“Another great underwriting year has helped us to generate a five-year average combined ration of 89.4 per cent. The company has made great progress in 2014 on executing our goals and initiatives and is well positioned for 2015 and beyond.”

And Mr Carmilani said he looked forward to “continued attractive opportunities across our platforms”.

The firm said it had realigned its two insurance business segments in the third quarter of last year from US and Canada and international insurance, which covered all other regions, to reporting segments covering North American insurance, global markets insurance and reinsurance.

The firm wrote gross premiums of $565.7 million in the final quarter of last year, a 1.8 per cent increase on the $555.5 million in the same period of 2013.

The Allied World report said: “This was driven by growth in the global markets insurance segment and North American insurance segment, offset by a decrease in the reinsurance segment.”