One of Bermuda?s newest insurance companies, Allied World Assurance Holdings Ltd. yesterday reported that it had doubled its profits after exceeding its premium targets.

The company, which has its offices on Victoria Street, reported net income of $87.2 million for the fourth quarter 2003, compared to $42.8 million for the fourth quarter last year.

And for the year net income to December 31, 2003, was $288.4 million, compared to $127.6 million for the same period last year.

?2003 was an excellent year for Allied World,? said Scott Carmilani, who succeeded industry veteran Michael Morrison as president and chief executive officer last month.

?The company?s success reflects the dedication, great customer service and solid underwriting decisions provided by all involved. Everyone at AWAC is justifiably proud of our accomplishments over the past two years. Our premium targets were exceeded, expenses were controlled and, most importantly, excellent overall profitability was attained.?

AWAC was one of a half a dozen insurance companies to set up in Bermuda in the wake of the capital crunch following the terrorist attacks on September 11, 2001.

It is a property and casualty insurer and has grown to have several floors of the Bermuda Commercial Bank building in Bermuda and offices in New York and Dublin.

Mr. Carmilani went on to say yesterday that the basis of success for AWAC lay in the selection, pricing and terms of each individual risk.

?Our brokers and clients have been impressed with the expertise, responsiveness, accessibility and ?can do? attitude of the AWAC team,,? he added. ?Our position as ?insurer of choice? in our selected markets is further enhanced by the service that follows after the underwriting decision has been made.?

Mr. Carmilani said that in everything from policy issuance, claims handling and payment, to billing and collections, AWAC?s reputation for superior service was now well established.

Gross premiums written were $317.2 million in the fourth quarter 2003, a 33 percent increase over the same period in 2002. For the 12 months ended December 31, 2003, gross written premiums increased 70 percent over the prior year, to $1.57 billion.

Net premiums earned in the current quarter were $325.1 million, and $198.4 million in the quarter ending December 31, 2002; net premiums earned in the twelve months ending December 31, 2003, were $1,167.2 million, compared to $434.0 million in 2002.

Net loss and loss adjustment expenses incurred (including increases in reserves for incurred but not reported losses) were $188.7 million in the quarter ended December 31, 2003, and $138.3 million in the same quarter last year, representing loss ratios of 58.1 percent and 69.7 percent, respectively.

Net loss and loss adjustment expenses incurred were $762.1 million in the twelve months ended December 31, 2003, and $304.0 million for 2002, representing loss ratios of 65.3 percent and 70.1 percent, respectively.

Acquisition costs and general and administrative expenses totalled $72.8 million in the quarter ended December 31, 2003, and $44.1 million in the quarter ended December 31, 2002, representing expense ratios of 22.4 percent and 22.2 percent, respectively.

For the twelve months ended December 31, 2003, acquisition costs and general and administrative expenses totalled $229.1 million, compared to $89.7 million for 2002, representing expense ratios of 19.6 percent and 20.7 percent, respectively.

The company?s combined ratio for the quarter ended December 31, 2003 was 80.4 percent, and for the quarter ended December 31, 2002, was 92.0 percent. For the twelve months ended December 31, 2003 and 2002, the combined ratios were 84.9 percent and 90.7 percent, respectively.