Platinum Underwriters Holdings Ltd. announced a mixed bag of results for its second quarter, with net income on the increase, but net premiums written down.

Net income rose $8.9 million (10.9 percent) compared to the same quarter last year, while the figure for net premiums written decreased $22m (7.1 percent), as did net premiums earned $41.1m (12.2 percent).

As an overall total, the Bermuda-based insurer reported net income of $90.7m, or $1.34 per diluted common share and net premiums earned of $259.9m, with net premiums written totalling $287.7m.

Elsewhere net favourable development was up from $13.3m to $22.2m when compared to the same quarter last year, with net investment income standing at $54.7m, an increase of 20.6 percent ($9.3m) from 2006's figure.

CEO Michael Price put the reasons behind the results down to considerable underwriting gains and the growth of investment income.

"We produced strong net income in the second quarter of 2007 reflecting significant underwriting gains and growing investment income," Mr. Price said. "Our book value per share was $30.35, an increase of 7.1 percent from December 31, 2006.

"Net premiums earned declined 12.2 percent from the same quarter last year as growth in our property and marine segment was more than offset by declines in the casualty and Finite Risk segments." Mr. Price added: "At this point we anticipate that we have written over 85 percent of total premium for 2007. We believe that market conditions for 2008 will be significantly influenced by the presence or absence of major catastrophe losses, significant capital management efforts and industry consolidation.

"With our solid balance sheet, excellent ratings and strong risk management capabilities, we believe we are well positioned to capitalise on whatever opportunities the reinsurance marketplace may present."

Net premiums written for Platinum's property and marine, casualty and finite risk segments for the quarter were $119.2m, $162.5m and $6m respectively, representing 41.4 percent, 56.5 percent and 2.1 percent respectively, of the total net premiums written. Compared to the same quarter last year, net premiums written increased by $33.6m (39.2 percent) in the property and marine segment and decreased by $36.8m (18.4 percent) and $18.9m in the casualty and finite risk segments respectively.