Bermuda insurer and reinsurer Maiden Holdings Ltd last night reported net income of $25.8 million for the second quarter — up more than 27 percent from the same period last year — and record operating earnings.

Maiden’s chief executive officer Art Raschbaum said the company managed to realise “strong disciplined growth”.

Operating earnings of $28.2 million, or 37 cents per share, were in line with analysts’ expectations, and compared with operating earnings of $20.4 million, or 28 cents per share in the second quarter of 2013.

“Our underwriting portfolio continues to benefit significantly from organic growth of existing client relationships and select additions of new client relationships,” Mr Raschbaum said.

“In the quarter, unrealised gains and net income boosted shareholders’ equity by over $79 million, an increase of 6.9 percent. Quarterly net operating income set a record at $28.2 million, reflecting growth in invested assets partially offset by a slightly higher combined ratio.

“Going forward, we are focused on enhancing underwriting performance and strengthening operating returns.”

Maiden said that excluded from second quarter 2014 operating earnings was an established provision of $2.8 million comprised of loss activity and additional reinstatement premiums related to ceded losses in the company’s divested excess and surplus lines property insurance business that was sold to Brit Global Specialty in May 2013.

Net premiums written totalled $540.9 million, an increase of 8.6 percent compared to the second quarter of 2013.

The combined ratio for the second quarter of 2014 totalled 98 percent compared with 97.6 percent in the same period last year.

Maiden noted: “While moderated from first quarter 2014 levels, the Diversified Reinsurance segment experienced continued elevated losses from non-catastrophe US property reinsurance contracts.”

Record net investment income of $28.1 million in the second quarter of 2014 was up 35.5 percent compared to the second quarter of 2013. The average yield on the fixed-income portfolio (excluding cash) is 3.54 percent with an average duration of 4.8 years.

Total assets increased 6.5 percent to $5 billion at June 30, 2014 compared to $4.7 billion at year-end 2013. Shareholders’ equity was $1.2 billion, up 8.8 percent from the end of last year.

Book value per share was $12.46 at the end of the second quarter of 2014 or 11.8 percent higher than at December 31, 2013.

Maiden’s board declared dividends of 11 cents per common share in the second quarter.