Bermuda-based Aspen Insurance Holdings Ltd. reported a 10.6-percent rise in net income for the second quarter, aided by low catastrophe losses.

The insurer and reinsurer said on Wednesday evening that net earnings for the quarter totalled $126.9 million, or $1.44 per share.

Combined ratio, the percentage of each premium dollar spent on claims and expenses, improved to 78.2 percent, from 88.4 percent achieved in the same quarter in 2007.

Aspen said it had seen benign catastrophe loss experience against a backdrop of significant industry losses due to tornadoes and floods in the US Midwest.

Despite a market in which rates have been falling across virtually all lines, Aspen managed a five-percent increase in gross premiums written to $528.8 million for the April through June period. The international insurance sector was given most of the credit for the increase, recording a 30-percent increase in gross premiums written to $258.9 million, reflecting the contribution of business such as political risk, excess casualty insurance and professional lines.

In its reinsurance operations, Aspen saw gross premiums written tumble 28.5 percent primarily due to what the company described as its "rigorous risk selection criteria in challenging market conditions", as well as lower rates. Aspen's reinsurance combined ratio improved to 91.5 percent from 94.7 percent a year earlier.

Net investment income fell to $70.5 million compared to $78.8 million in the same quarter last year. Aspen said it expected volatility in the capital and equity markets to continue throughout the year

Annualised operating return on equity was 21.2 percent, an increase of 1.5 percentage points compared with the second quarter of 2007.

Book value per share increased 22.1 percent to $29.84 from $24.44 a year earlier, and by 2.1 percent over the three months - its 11th successive quarterly rise.

The company repurchased $100 million in shares on May 13, representing about four percent of Aspen's market capitalisation at that date.

CEO Chris O'Kane said: "Aspen had a strong quarter and delivered results ahead of our expectations...Our solid underwriting performance demonstrates our well diversified portfolio and stringent risk selection criteria."