Bermuda-based Platinum Underwriters Holdings Ltd. saw profits rise 26.5 percent in the second quarter compared to the same period last year, while book value growth was in double digits for the period.

The reinsurer's net income for the three months April through June was $124.1 million, or $2.68 per common share, up $26 million from the second quarter of 2009.

The company achieved the rise in profit despite seeing a 27 percent fall in net premium written to $399.1 million.

The announcement got second-quarter earnings announcements for the Island's large commercial re/insurers off to a solid start.

"Our record diluted earnings per common share in the second quarter of 2010 reflect Platinum's disciplined approach to underwriting, strong investment results and active capital management," Platinum chief executive officer Michael Price said in a statement released after the markets closed yesterday.

"Our book value per common share was $51.23 as of June 30, 2010, an increase of ten percent from March 31, 2010 and 13.3 percent from December 31, 2009.

"So far this year we have assembled an acceptable portfolio of treaty reinsurance risks, repositioned our investment portfolio and deployed free capital into buying back shares, which better aligns our capital base with our business opportunities."

The results for the quarter included net premiums earned of $191.4 million, net favourable development of $40.1 million and net investment income and net realised gains on investments of $84.9 million.

Combined ratio — the percentage of premium dollars outlaid on claims and expenses — was 67.4 percent for the quarter, an improvement of 9.5 percentage points over last year.

The major business lines were property and marine, which reaped $74.1 million in net premiums written and casualty, which recorded $72.6 million.

For the first six months of the year, net income was $139.6 million, or $2.95 per share, a 23.8 percent fall compared to the same half of last year, a comparison impacted by losses connected to the Chile earthquake in the first quarter of 2010.

During the three months ended June 30, the company repurchased nearly 4.1 million common shares for around $149.6 million at a weighted average cost, including commissions, of $36.76 per share.

During the six months ended June 30, 2010, the company repurchased an aggregate of 5.76 million common shares for approximately $212.8 million at a weighted average cost, including commissions, of $36.96 per share.