Bermuda-based Allied World Assurance Holdings, Ltd, one of the post-September 11 insurance start-ups, yesterday released results showing a third quarter net profit of $40.9 million and $84.9 million for the nine months ended September 30, 2002.

The company's combined ratio for the quarter, however was 91.2 percent and for the nine months to September 30, 2002 was 89.7 percent.

Vice president and treasurer, George Cubbon said that premium writing had remained fairly flat since the previous quarter, but this was partly attributable to the cyclical nature of the underwriting year, particularly in the property and casualty area.

President and chief executive officer Michael I. D. Morrison referred to the ongoing chaos in the reinsurance and insurance industries, adding that: "During the quarter we have conservatively increased the reserves we set aside for claims."

Gross premiums written were $278.8 million in the third quarter of 2002 and for the nine months ended September 30, 2002 gross premiums written were $684.0 million. Net premiums written in the quarter were $254.3 million and for the nine months were $652.2 million.

Net premiums earned in the quarter ended September 30, 2002 were $136.0 million. For the nine months ended September 30, 2002 net premiums earned were $235.6 million.

Net investment income was $30.2 million in the quarter ended September 30, 2002 and $61.0 million in the nine months ended September 30, 2002. Net loss and loss adjustment expenses incurred (including increases in reserves or incurred by not reported losses) were $101.3 million in the quarter ended September 30, 2002 and $165.7 million for the nine months ended September 30, 2002 representing loss ratios of 74.5% and 70.3% respectively.

Acquisition costs and general and administrative expenses totalled $22.7 million of the quarter ended September 30, 2002 and represented an expense ratio of 16.7percent.

For the nine months ended September 30, 2002, these costs were $45.6 million and represented an expense ratio of 19.4 percent.

Net income, which includes $0.2 million of net realised losses, was $40.9 million for the three months ended September 30, 2002 and $84.9 million, including $0.4 million of net realised gains, for the nine months ended September 30, 2002. At June 30, 2002 shareholders' equity was $1,638 million, an increase of 9.9% over the $1,490 million reported at December 31, 2001.