Bermuda reinsurer Platinum Underwriters Holdings Ltd. yesterday reported a 44-percent rise in net income for the first quarter to $105.2 million.

Net investment income totalled $49.1 million and, although this figure was down 5.1 percent on the same three months last year, was a major contributor to the company's first-quarter success.

Platinum reported also reported a large increase in favourable prior period development, which totalled $29.5 million, compared with $13.9 million for the first quarter of 2007 last year.

Net premiums earned rose six percent to $301.9 million, as the company achieved a combined ratio of 78.4 percent, compared to 87 percent in the three months through the end of March last year. Combined ratio reflects the percentage of each premium dollar earned spent on claims and expenses. A decrease reflects an improvement in underwriting profitability.

Platinum chief executive officer Michael Price said: "Platinum produced another quarter of record results reflecting our disciplined underwriting approach, lower than expected catastrophe activity, favourable prior period development, significant investment income and active capital management.

"Our book value per share increased 5.8 percent to $36.01 from December 31, 2007 and reflects our share repurchase activity during the quarter. Net premiums earned were up six percent compared with the same quarter last year, primarily due to a single large contract written during the quarter and an increase in premiums for casualty business written in prior underwriting years."

He added: "We will continue seeking reinsurance opportunities focusing on profitability, not market share. To the extent that we develop excess capital, we will return it to shareholders through share repurchases, provided we can do so at appropriate valuations."