Allied World Assurance Company Holdings Ltd. boosted its profits by 44 percent and its book value by a double-digit percentage during the second quarter of 2009.

The company saw its net income rise to $113.7 million, or $2.22 per share, for the second quarter to $79.2 million, or $1.56 per share, for the same period in 2008.

The insurer also reported operating income of $112.8 million or $2.20 per share compared to $83.2 million or $1.64 per share over the respective period.

Allied World's president and CEO Scott Carmilani said: "The company's annualised operating return on equity is 20 percent for the first half of the year and our total book value has grown more than 13 percent since year end 2008.

"The company's total capital now exceeds $3.2 billion, which positions us very well as our initiatives to expand the breadth of our global insurance and reinsurance operations have begun to take hold.

"Shareholders expect consistently strong results and we are proud that we have continued to deliver them. Our results are a testament to our underwriting culture and sound investment strategies that have been a hallmark of Allied World since our inception in 2001.

"These strengths continue to serve us well as we navigate through the current industry cycle and focus on product lines and geographic markets where we believe opportunities exist."

Gross premiums written increased by 10.3 percent to $492.8 million in the second quarter from $446.8 million last year, while net premiums earned were $333.7 million, a 24.1 percent increase versus $268.9 million in 2008.

The company's combined ratio - the percentage of premiums paid out in claims and expenses - improved to 83.1 percent in the second quarter of 2009 from 93.2 percent last year.

Allied recorded net favourable reserve development on prior loss years of $36.6 million, contributing 11 percentage points to the company's loss and loss expense ratio for the quarter. This compares to the second quarter of 2008, where the company recorded net favourable reserve development on prior loss years of $39.8 million, a benefit of 14.8 percentage points.

Absent prior year reserve adjustments, the loss and loss expense ratio related to the second quarter of 2009 was 64.3 percent compared to 81 percent for the same period last year.

During the three months ended June 30, 2008, the company suffered higher than expected losses, such as net losses and loss expenses as a result of the floods in the US Midwest and a gas pipeline explosion in Australia.

As of June 30, 2009, shareholders' equity was $2.7 billion, a 13.4 percent increase compared to $2.4 billion as of December 31, 2008 mainly due to net income of $245.1 million and net unrealised gains on investments of $79.9 million recognised during the six months ended June 30, 2009.

ALLIED WORLD Q2 REPORT CARD

Net income: $113.7 million compared to $79.2 million in 2008

Combined ratio: 83.1 percent compared to 93.2 percent in 2008

Gross premiums written: $492.8 million compared to $446.8 million in 2008