catastrophe reinsurer IPC Holdings Ltd. double its profits in its third quarter.

Operating income reached $15 million or $0.59 per share (excluding net realised gains) for the quarter ended September 30, 2000, compared to $7.5 million, or $0.29 per share, for the third quarter of 1999.

President and chief executive officer Jim Bryce said continuing improvements in terms and conditions are reinforcing the improving pricing of reinsurance products.

"We hope these developments will have a positive impact on the upcoming January 1 renewals, and for the remainder of the 2001 year,'' he said.

"While the third quarter is traditionally the busiest in terms of catastrophic activity, our strong results this quarter reflect the unusually low level of catastrophes in the period this year, as well as the improvements in pricing.'' Gross written premiums in the quarter ended September 30, 2000 were $10.5 million, compared to $8.8 million written in the quarter ended September 30, 1999.

The company said that its premiums were between 10 and 15 percent higher this quarter because of rate increases, as well the renewal of those contracts written on January 1, 1999 with coverage for periods of eighteen months.

For the nine months ended September 30, 2000 gross written premiums were $88.6 million, compared to $92.4 million written in the nine months ended September 30, 1999.

IPC said premium volume for the nine months ended September 30, 2000 was lower because the first nine months of 1999 saw substantial reinstatement premiums written as a result of significant events that occurred in that period.

This has been partially offset by new business and additional premiums from existing clients, as well as rate increases, of up to 15 perecent.

Premiums ceded to IPCRe's pro rata retrocessional facility in the quarter ended September 30, 2000 were $1.1 million, bringing the total for the nine months ended September 30, 2000 to $3.8 million.

In the three and nine month periods of 1999, premiums ceded were $0.5 million and $3.6 million, respectively.

Net premiums earned in the three months ended September 30, 2000 were $20.2 million, compared to $21.3 million earned in the quarter ended September 30, 1999. For the nine months ended September 30, 2000 net premiums earned were $66.4 million, compared to $72.0 million earned for the nine months ended September 30, 1999.

A release from the company attributed the decline in earned premiums to the reduction in reinstatement premiums, which are fully earned when written.

Net investment income was $7.9 million in the quarter ended September 30 2000, compared to $7.5 million in the corresponding quarter of 1999. This brought the total for the nine months ended September 30, 2000 to $23.3 million, compared to $22.6 million for the nine months ended September 30, 1999.

Losses incurred were $7.8 million in the quarter ended September 30, 2000, compared to $16.1 million for the quarter ended September 30, 1999. Losses incurred in the third quarter of 2000 included: $2.5 million from the Kuwait National Petroleum explosion, a satellite loss and minor development of claims from some events which took place in prior years.