Allied World Assurance Company Holdings Ltd. last night posted second quarter 2006 income that was 43 percent higher than the same period a year ago, helped by improved property rates and higher investment income.

Income for the second quarter 2006 was $102.4 million, or $2.02 per versus income of $71.5 million, or $1.41 per share, for the second quarter 2005. Operating income rose 43 percent to $112.1 million, or $2.21 per share.

During the quarter, AWAC held its initial public offering and a $500 million senior notes offering.

The company has also implemented its strategy to reduce its aggregate property exposures to catastrophes.

?This strategy, combined with the diversity of our portfolio of business and our strong ratings, positions us extremely well as we move forward as a public company,? said president and chief executive officer Scott Carmilani.

Investment income increased 38 percent in the second quarter 2006 to $54.9 million, reflecting the increase in the company?s invested asset base combined with higher investment yields as well as increases in dividends received from a high-yield bond fund and hedge fund investments.

Gross premiums written rose 17 percent to $518.3 million in the second quarter 2006 helped by an increase in general property rates in catastrophe prone areas and an increase in market opportunities that developed following the 2005 hurricane season.

Net premiums written rose 16 percent to $370.3 million in the second quarter 2006, reflecting the rise in general property rates in catastrophe prone areas, but partially offset by increased costs of property catastrophe reinsurance protection.

The combined ratio was 78.2 percent in the second quarter 2006 compared to 86.3 percent in the second quarter 2005.

At June 30, 2006, shareholders? equity was $1.6 billion compared to $1.4 billion reported at December 31, 2005.

Shares closed unchanged at $34.40 on the New York Stock Exchange.