Max Capital Quarterly Net Down 41 Percent

NU Online News Service, Aug. 4, 3:20 p.m. EDT

Hamilton, Bermuda-based insurer and reinsurer Max Capital Group Ltd. reported second-quarter net income of $43.8, a 41 percent decrease from the $74.2 million recorded for the period in 2008.

The company's chairman and chief executive officer, W. Marston Becker, said it was the second consecutive quarter of strong growth in gross premium written, "primarily driven by the expansion of Max's newer specialty underwriting platforms in the U.S. and at Lloyd's."

For the first half of the year, Max reported net income of $88.3 million, up from 82 million in the 2008 first half.

In the second quarter, gross premiums written rose to $396.5 million, compared to $369.3 million for the same period in 2008. Gross premiums written from property and casualty underwriting were $355.5 million compared to $275.7 million a year ago, Max said.

Net premiums earned shrank to $228.8 million in the quarter, down from $234.6 million last year.

The 2009 second-quarter combined ratio was 90.8, up from 79.4 a year ago.

Net investment income for the 2009 second quarter was $41.8 million, down from $42.5 million for the same period in 2008. "The decline from a year ago reflects lower yields on the higher cash and cash equivalents balance held by the company," Max said.

Net gains on other investments for the quarter were $21.4 million, compared to 2008 second-quarter net gains of $39.5 million.

Mr. Marston said, "Overall loss and combined ratios remain at attractive levels, benefiting from our disciplined underwriting and successful diversification strategy. We continue to see attractive opportunities and are focused on adding new products and teams to each of our global platforms. Market conditions continue to support 2009 as a more attractive underwriting year than 2008."