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

Like many other Bermuda companies reporting first-quarter financial results earlier this year, that also reported better underwriting and investment results on flat or declining premium, Allied World said its premiums were roughly flat--at half a billion dollars.

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

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

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

Early results for seven Bermuda insurers published by National Underwriter (in the May 1 print edition, page 8), revealed flat or declining premiums for six out of seven, with the group reporting an 8 percent drop overall.

The lone exception was for the only pure property-catastrophe reinsurer 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-catastrophe business, RenaissanceRe released earnings after that initial report published by NU and also reported growing premium--with its gross written premium rising 7.7 percent.

Allied World's net income growth appears somewhat stronger than other 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 Holdings reported a 29 percent jump in net income and a 2.8 percent drop in gross premiums. Endurance Specialty reported an 11 percent jump in net income and an 18.7 percent drop in gross premiums.

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