Transatlantic reported estimated pre-tax net catastrophe costs of $146.1 million and $143.8 million relating largely to Hurricane Ike.

The company said it does not know whether AIG will dispose of all or any portion of its 59 percent common stock interest in Transatlantic. AIG is in the process of selling assets to pay off more than $100 billion in government loans.

Mr. Orlich in his statement said that despite a "conservative investment portfolio, we recorded significant unrealized depreciation due mostly to the impact of an increase in credit spread on our fixed maturity portfolio." There were also costs related to a strengthened U.S. dollar, he said.

Transatlantic, Mr. Orlich reassured, remains financially strong during the credit crisis and, "We see opportunities in the current environment that we will pursue for the right price."

He also said the company is seeing signs of market price stabilization and, "In several classes and regions we expect to see price increases."

The company said net income for nine months was $97.9 million or $1.47 a share compared with $374.6 million or $5.62 a share in the period last year.

Realized pre tax net capital loss was $157.6 million compared with $14.7 million for the period last year.

The company said realized net capital losses include write downs related to fixed maturity and equity securities due to a severe decline in market values resulting from the economic downturn.

Net premiums written increased 11.1 percent to $1.09 billion compared with $984 million last year. For the first nine months they were up 5.6 percent to $3.1 billion, compared to $2.95 billion in the first nine months of 2007.

The company's combined ratio in the quarter was 107.8, compared with 93.7 for the 2007 period.