A 13 percent rise in gross premiums from its Bermuda underwriting unit helped Catlin Group to achieve an overall 11 percent increase in sales during the first quarter.The global re/insurer, which is domiciled in Bermuda but has traditionally written the largest portion of its business through the Lloyd’s of London market, said in its interim statement that more than half of its $1.41 billion in first-quarter sales came through non-London underwriting hubs.Catlin added that its previous estimate of $375 million in first-quarter catastrophe losses $200 million of which relates to the earthquake and tsunami in Japan remained unchanged.Catlin CEO Stephen Catlin said he expected the high level of first-quarter natural disasters, which also included an earthquake in New Zealand and large-scale flooding in Australia, to be “an earnings event rather than a capital event”.“Rates for certain classes of business are starting to rise following the first-quarter catastrophes,” Mr Catlin said. “In the light of the more than $50 billion in natural catastrophe losses incurred since the beginning of this year including the damage from tornadoes in the US in April combined with the prolonged low investment return environment, it would be totally appropriate for rates to increase on a widespread basis.”The Bermuda platform, which operates out of offices on the top floor of the Washington Mall III building, wrote gross premiums of $219 million, compared to $194 million in the first quarter of 2010.The company said the 13 percent increase was largely the result of rate increases in the international treaty reinsurance portfolio, as well as reinstatement premiums paid following first-quarter catastrophe events.This contrasted with the 10 percent decline in sales in the UK to $677 million in the first quarter, compared to $754 million in the same period of last year. “The Group continues to reduce the volume of business underwritten in the London wholesale market because of competitive conditions for certain classes of business, including casualty business,” Catlin’s statement read.Catlin’s sales in the US rose by 18 percent to $205 million on new business and higher retention rates.But the strongest growth came in Catlin’s international division, comprising its underwriting hubs in Asia, Europe and Canada, which overtook the contribution of Bermuda in the first quarter, with gross premiums of $311 million. This represented a 107 percent increase from the $150 million in sales in the same period in 2010. This growth was principally driven by new reinsurance business generated by the launch of Catlin Re Switzerland at the start of this year.The company said rates for many types of catastrophe-related business had increased, however average weighted premium rates across the group’s portfolio were flat.Mr Catlin said the structure of the group’s catastrophe reinsurance programme meant that much of the losses from another major catastrophe event such as a US hurricane would be recoverable.Catlin was “in an excellent position” to compete strongly in its various markets, he added.“The long-term investment in our international hub structure gives us the resources with which to increase volume quickly in all regions of the world when market conditions do improve,” Mr Catlin said.“In the meantime, we will continue to underwrite prudently, taking advantage of opportunities produced by our global underwriting presence but refusing to write business that does not meet our standards.”