(Reuters) — Property/casualty insurer Lancashire Holdings Ltd. swung to a profit in 2018 from a loss a year earlier, helped by a rise in gross written premiums as it predicted rises in rates across many of its businesses.

The Lloyd’s of London insurer, which writes policies for heavy-duty assets such as oil rigs, ships and aircraft, reported profit before tax of $33.6 million for the year ended Dec. 31, compared with a loss of $72.9 million a year earlier.

Gross written premiums rose 7.9% to $638.5 million for the year, and the company’s combined ratio — a measure of underwriting profitability — improved to 92.2% from 124.9% last year. A level below 100% indicates an underwriting profit.

Lancashire Chief Executive Alex Maloney said loss activity in the fourth quarter had been higher than average, like its larger rival Beazley PLC, but the loss ratio suggested claims from Atlantic hurricanes, typhoons in Asia and the California wildfires were lower compared with a year earlier.

The industry faced record losses in 2017 due to the impact of hurricanes Harvey, Irma and Maria and Mexican earthquakes. Lancashire gave a total estimated net loss figure for 2018 of $164.7 million, versus $181.8 million in 2017.

The underwriter said 2018 net losses included $56.1 million in relation to its marine portfolio, Hurricane Florence and typhoons Jebi, Mangkhut and Trami.

The fourth quarter of 2018 was impacted by Hurricane Michael and the California wildfires. Its net losses recorded for these events were $48.8 million.

Brussels Brexit hub

Separately, Lancashire said it will use Lloyd's of London's European Union hub in Brussels after Britain leaves the European Union, its top boss told Reuters.

“We have negotiated with Lloyd’s and we will write businesses that are affected by Brexit through our Lloyd’s platform, through Lloyd’s Brussels ... That is a great solution for us,” Mr. Maloney said.

Lloyd’s has said it would launch a Brussels unit to continue serving its customers in the European Economic Area after Brexit.

“Clearly, we do not want to lose our European business but it is not a huge driver ... None of us really know what will happen with Brexit, and if that changes and we need an office in Europe, we’ll open an office,” he said.

Mr. Maloney flagged Dublin as an “obvious option” for a potential Brexit hub, joining rival insurer Beazley. He said Lancashire had not seen any material costs yet from the looming Brexit.

Beazley, the first Lloyd’s of London insurer to report results this year, changed its tune on Brexit last week, saying Britain’s departure from the European Union should not present any "insurmountable challenges.”