Allied World Assurance Company Holdings Ltd. continued its strong momentum from last year into 2009, posting a profit of $131.4 million for the first quarter.

Net income broke down to $2.57 per share for the first quarter compared to $130.9 million, or $2.55 per share, for the same period in 2008.

Operating income was also up from $128 million, or $2.49 per share, for last year's first quarter to $137.6 million, or $2.69 per share, for the opening quarter of 2009.

Scott Carmilani, president and CEO of Allied World, said: "Allied World's momentum of 2008 continued into the first quarter of 2009, despite strong headwinds in the market.

"We are very pleased to continue to deliver meaningful book value growth to our shareholders and to report an impressive annualised operating return on equity of over 23 percent for the first quarter of 2009. Our total capital base is now $3 billion, and we have significantly built out our US operating platform."

The company's gross premiums written increased by 20.8 percent to $479.6 million in the first quarter of 2009 from $396.9 million in the fourth quarter of 2008, mainly down to the inclusion of the Darwin business and increased writings in the US insurance segment by its other US offices, offset by our decision to reduce property and energy business in its international insurance segment that did not meet its underwriting requirements. Allied World's combined ratio was 75.3 percent in the first quarter of 2009 versus 78.2 percent in the corresponding period of 2008, while the loss and loss expense ratio was 45.8 percent and 52.5 percent respectively.

During the first quarter of 2009, the company recorded net favourable reserve development on prior loss years of $60.2 million, a benefit of 18.6 percentage points to the company's loss and loss expense ratio for the quarter.

The company's staff count increased to 590 as of March 31, 2009 from 312 as of March 31, 2008, which included 173 Darwin employees. The net increase in salary and employee welfare costs, including stock compensation, stood at $13.8 million during the first quarter of 2009 compared to the first quarter of 2008.

Meanwhile, net investment income in the first quarter of 2009 was $77.9 million, representing an increase of 1.2 percent from the $76.9 million of net investment income in the first quarter of 2008.