NU Online News Service, Aug. 5, 12:24 p.m. EDT

Bermuda-based Flagstone Reinsurance Holdings Limited reported second-quarter net income increased 62 percent to $67.8 million, compared with $41.9 million recorded for the period in 2008.

For the first six months of 2009, the company reported net income attributable to common shareholders of $103.6 million compared to $74.8 million in the first half of last year.

Gross premiums written in the second quarter were $328.7 million, up from $271.2 million for the same quarter last year. Of second-quarter gross premiums written, $279.5 million came from the reinsurance segment.

Lloyd's syndicate 1861 began writing business for the benefit of Flagstone on Jan. 1, as a result of Flagstone's Nov. 2008 acquisition of Marlborough, the managing agency for Syndicate 1861. The Lloyd's segment of Flagstone's business contributed $36.6 million in gross premiums written for the quarter, the company said.

Flagstone's insurance segment contributed an additional $25.1 million in gross premiums written.

Net premiums earned for the quarter totaled $187 million, up from 2008 second-quarter net premiums earned of $141.8 million.

The combined ratio for the quarter improved to 68.7 from 76 a year ago.

On the investment side, the company reported net investment income of $10.6 million for the quarter, compared to $13.3 million in the 2008 second quarter. The 2009 second-quarter net realized gains on investments were $7.1 million compared to 2008 second-quarter net realized losses on investments of $9.3 million.

David Brown, Flagstone chief executive officer, said in a statement, "Flagstone's solid performance this quarter is the result of the continued strength of our underwriting, expansion in several lines of business and geographical diversification."

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