Allied World Assurance Group reported a 52 percent jump infirst-quarter net income yesterday, attributing the result to abetter combined ratio and a boost in net investment income overlast year's first quarter.

Like many other Bermuda companies reporting first-quarterfinancial results earlier this year, that also reported betterunderwriting and investment results on flat or declining premium,Allied World said its premiums were roughly flat--at half a billiondollars.

Specifically, gross premiums for the quarter were $498.1million, compared with $505.3 million last year.

Net written premiums fell 2.5 percent to $427.5 million.

Net income was $98.1 million, compared with $64.4 million lastyear.

Net investment income rose more than $22 million to $62 millionfor first-quarter 2006, compared with $40.3 million forfirst-quarter 2005.

The first-quarter 2006 combined ratio improved more than sixpoints, dropping to 85.1. Last year's combined ratio for thequarter was 91.3.

Early results for seven Bermuda insurers published by NationalUnderwriter (in the May 1 print edition, page 8), revealed flat ordeclining premiums for six out of seven, with the group reportingan 8 percent drop overall.

The lone exception was for the only pure property-catastrophereinsurer whose results were available at the time, IPC Holdings,which reported a 15.4 percent jump in premiums.

Another Bermuda firm with a big book of property-catastrophebusiness, RenaissanceRe released earnings after that initial reportpublished by NU and also reported growing premium--with its grosswritten premium rising 7.7 percent.

Allied World's net income growth appears somewhat stronger thanother Bermuda players with diversified property-casualty,insurance-reinsurance books.

Most diversified Bermuda companies like Allied World, however,reported double-digit income spurts. For example, Axis Holdingsreported a 29 percent jump in net income and a 2.8 percent drop ingross premiums. Endurance Specialty reported an 11 percent jump innet income and an 18.7 percent drop in gross premiums.