NU Online News Service, Nov. 2, 3:55 p.m. EDT

Net income was down for two reinsurers reporting 2010third-quarter results, while profit for a specialty lines insuranceand treaty reinsurance company returned to the black.

Everest Re Group Ltd. of Hamilton, Bermuda, said its net incomefor the quarter was $174.2 million compared to $228.6 millionduring the same quarter a year ago.

Third-quarter net income was also down for Luxembourg'sFlagstone Reinsurance Holdings--to $37.3 million from $67.1million.

Meanwhile, Pembroke, Bermuda-based AXIS Capital Holdings Ltd.reported 2010 third-quarter net income of $239 million compared toa loss of $96 million during the same period in 2009.

AXIS said it experienced $85 million in pre-tax net losses fromthe New Zealand earthquake in September, but total underwritingincome increased 79 percent compared with the 2009 third quarter,to $127 million.

Flagstone reported a material net loss of $52.5 million for theNew Zealand earthquake, driving underwriting income down more than91 percent to $4.1 million from $47.1 million a year ago in thereinsurance segment. The combined ratio in this segment was 97.6during the third quarter compared to 73.5 a year ago.

Everest said it had nearly $90 million of catastrophe losses,primarily due to events in the third quarter.