Tokio Marine Europe Insurance Limited's profits tumbled from a post-tax profit of £31.4m to just £8.6m last year, latest accounts reveal.

The insurer's loss ratio rocketed from 29% to 53% as it released reserves for underwriting pool business in run-off in 2009. Combined ratio increased from 66% to 94%.

Meanwhile, gross earned premium was £254.7m compared to £265m in 2009. Net premium earned decreased £5m to £109.5m.

Wages and salaries increased from £17m to £17.85m as the number of staff declined slightly from 312 to 310, Companies House accounts said.

The directors’ report said: “To facilitate our objective of long-term sustainable growth and profitability, the group is continuing to invest resources to expand its local market business portfolio in the UK and through its branch offices in Europe.

“Emphasis is being placed on prudent underwriting and risk control with efficient administration and high standards of service for clients and intermediaries.

“The group is confident that this selective and controlled new business portfolio will both enhance its effectiveness and financial strength and increase its competitiveness in the longer term.”

Tokio Marine was unavailable for comment.