Three Bermuda insurers reported higher first-quarter earnings ascombined ratios improved thanks in part to lower catastrophelosses.

But lighter catastrophe losses did not tell the entire story. EdNoonan, chairman and CEO of Pembroke, Bermuda-based ValidusHoldings, Ltd. said in a conference call thatnon-catastrophe business also performed well for hiscompany.

Validus reported 2013 Q1 net income available to the company of$223.2 million, compared to $124.2 million in 2012's firstquarter.

Underwriting income was $210.1 million, up from $69.3 million ayear ago. The combined ratio improved to 60.5 in 2013's firstquarter, compared to 84.6 in 2012. Favorable development onprior-year accident years benefitted the loss ratio by 12.4percentage points.

Net written premiums grew to $917.5 million from $730.2 milliona year ago.

Net realized gains on investments were $1.7 million, down from$7.5 million in 2012's first quarter.

Noonan said in the conference call that the company's acquisition of Flagstone Re is going well, and Validus iskeeping the business it likes and is well on its way to disposingof business it doesn't want. Flagstone, Noonan said, contributed$20 million to Validus' net income.

Noonan also said Validus recently closed its acquisition ofLonghorn Re, a crop reinsurer, which will help Validus diversifyits crop business.

Hamilton, Bermuda-based Aspen Insurance HoldingsLimited reported 2013 first-quarter net income of $91.8million, up from $78.7 million a year ago.

Underwriting income increased to $51 million compared to $30.5million in 2012's first quarter. Operating income before taxes was$92.1 million in the quarter, up from $74.9 million.

The combined ratio improved to 90.1 in 2013 Q1 compared to 93.8in 2012. Favorable prior year development shaved 5.1 points off ofthe combined ratio. In 2012's first quarter, favorable developmentreduced the combined ratio by 7.5 points.

Net written premiums were $597 million, down from $633.5 milliona year ago.

Net realized investment gains after tax were $15.6 million, upfrom $5.2 million in 2012's first quarter.

In a conference call, Aspen CEO Chris O'Kane talked about thecompany's “three strategic pillars” — business portfoliooptimization, effective capital management and enhancing investmentreturns — designed to increase return on equity by 10 percent by2014.

O'Kane said the company has made progress in all three areas.For the first pillar, O'Kane discussed a strategy to reducevolatility in the company's book of business. “We previouslyidentified wind and earthquake-exposed property in our insuranceplatform as an area of our portfolio which was too volatile,”O'Kane said. “Our views have not changed and we're working towardreducing this exposure which equals an approximate reduction of$140 million of capital within the next two years and ultimately areduction of over $200 million.”

Axis Capital, based in Pembroke, Bermuda,reported 2013 Q1 net income available to common shareholders of$303 million, compared to $122 million in 2012's first quarter.

Underwriting income was $170.8 million in the quarter, up from$62.7 million. The combined ratio improved to 83 compared to 94.8in 2012's first quarter.

Net premiums written were up to $1.6 billion in the quarter,compared to $1.4 billion in Q1 2012.

Net realized investment gains increased to $44.5 million in2013's first quarter, up from $14.5 million a year ago.

Albert Benchimol, Axis president and CEO, says in a statement,“Axis had a very good first quarter, with solid contributions fromboth our insurance and reinsurance segments. Overall, grosspremiums written were up 15 percent. Both segments contributedstrong and diversified premium growth as well as solid underwritingprofits.”

He adds, “We continue to find good risks in an improvingmarketplace and are very pleased with the progress of our newerinitiatives in both insurance and reinsurance. We believe thecombination of attractive opportunities and our strong capitalposition should allow us to both continue on a path of profitablegrowth and return to our shareholders the bulk of our earnings forthis year, in the form of dividends and share repurchases.”