Bermuda-based reinsurer Maiden Holdings Ltd. saw profits rise 14.7 percent increase in the second quarter over the same period last year.

The three-year-old company beat Wall Street estimates, generating operating income of $21.2 million, or 30 cents per share, compared to average analysts' expectation of 23 cents.

For the first half of 2010, net income totalled $32.2 million, up 9.7 percent from the first half of 2009.

Maiden has minimised catastrophic risk exposure, the speciality of many other reinsurers in the Bermuda market.

"Importantly, consistent with Maiden's strategy of producing stable underwriting results by focusing on lower volatility business and de-emphasising catastrophic risk, we have avoided losses from the large industry events such as the Chilean earthquake and the Deepwater Horizon oil spill," said Art Raschbaum, Maiden's president and chief executive officer.

"We continued to strengthen the overall earnings power of Maiden Holdings in the second quarter, and delivered both increased investment income and solid underwriting performance.

"We grew operating earnings by over 50 percent compared with the second quarter of last year, reflecting an increase of over 25 percent in both earned premium and investment income.

"These positive results reflect continued underwriting discipline in a competitive market and the benefit of strong relationships across our platform in both the USand Bermuda, including strategic relationships such as our recent partnership with ACAC."

The company expects its deal to buy auto insurer GMAC International Insurance Services to close by the end of the third quarter. Maiden will gain renewal rights onm a $100 million book of business as a result of the deal, as well as $100 million of assets used to pay claims.

Maiden saw a steep increase in the amount of business it wrote as gross premiums written soared by around 40 percent to $334.8 million.

Shareholders' equity of $724.8 million grew 7.1 percent from year end 2009 and book value per share rose 7.2 percent to $10.31 from $9.62 at year end 2009.