Bermuda insurer IPC Holdings has increased its profits by almost 82 percent for the first quarter of this year compared to last year.

And the company also reported its largest net operating profit of $44.3 million since the company started just under ten years ago. Net income was $43.5 million for the first quarter of 2002, compared to $23.9 million a year earlier.

Chief executive and president Jim Bryce said: "2002 is potentially a landmark year for IPC. We started the year with our significantly increased capital base of over $1.1 billion, thanks to the success of our equity offering in December 2001.

"As a result of our increased capital, we were able to satisfy our existing clients' requirements for a greater amount of the A-plus rated capacity that so many of them were seeking."

He also said that, in addition, the company was able to offer clients the additional A-plus rated capacity of Allied World Assurance Co., for whom they are now acting as exclusive underwriting agent with respect to property catastrophe reinsurance.

He added: "This in turn has generated a modest amount of income for IPC, without incurring any additional underwriting risk."

The company, during the first quarter, also exceeded one billion dollars of written premium, measured from the company's inception.

Mr. Bryce said: "Finally, next month, we commence our tenth year of operations. We are very gratified by the response and support of our clients, which has been reflected in our premium volume for the quarter, representing a significant increase over any comparable period in our past.

"We have also benefited from a relatively benign quarter in terms of loss activity, which in turn has resulted in our largest quarterly operating profit since inception of $44.3 million.

"April 1 renewals have, for the most part, met or exceeded our expectations, leading us to believe that our outlook for 2002 will continue to be positive. However, as we always remind our investors, a significant catastrophe can occur at any time, which could potentially have a material effect on our results of operations."

Earnings per share were recorded at $0.92, exceeding analysts expectations of between $0.79 and $0.86. Premiums written were in line with expectations, with gross written premiums jumping 124 percent to $147 million, in line with the company's increased capital base.

Management commented that first quarter renewals met or exceeded expectations.