IPC Holdings, Ltd. have announced a "landmark year" having more than doubled last year's premiums.

Operating income of $202,773 for 2002 was "nearly double" that of the operating income in the company's previous best year.

IPC writes mainly property catastrophe reinsurance and, to a limited extent, marine, aviation property-per-risk excess reinsurance. President and chief executive officer, Jim Bryce, said that IPC had benefited from a very benign year in terms of catastrophes.

They finished 2002 with their lowest ever loss ratio (losses to net premiums earned) of 17.1 percent compared to $111.5 for 2001.

Mr. Bryce said that overheads had been kept low while volumes had grown significantly leading to one of their lowest ever combined ratios.

He said that prices in their sector continue to rise slightly in 2003, "although the rate of increase is, as anticipated, less than that experienced in 2002."

Mr. Bryce also announced that "Given the level of earnings we have been able to generate over the past five quarters, we took the decision last month to return to paying a periodic dividend."

Fourth quarter results were slightly impacted by net realised losses in the equity part of the investment portfolio. John Weale, chief financial officer explained that fixed income securities in the portfolio achieved a gain which matched the fall in marked-to-market equity values.

However accepted accounting standards mean that unrealised gains in fixed securities, unlike impaired equity investments, are not included in the income statement.

Consequently, the revenue column shows realised losses of $36 million for the quarter which reduces net income for the quarter to $19.9 million, down from $20.3 million for the same quarter last year. The company earned net investment income of $11.9 million in the fourth quarter compared to $8.7 million in the fourth quarter of last year. This increase more than offset the decline in the average yield of their investment portfolio.