The majority of the Island?s publicly-listed insurers and reinsurers rebounded from a year of hurricane losses to healthy income in the first quarter of 2006.

While XL Capital and RenaissanceRe Holdings were among the eight Bermuda companies to post losses in fourth quarter 2005 after hurricanes cost the industry some $57 billion, this time around they trumpeted record earnings.

XL?s net written premiums in both its insurance and reinsurance businesses declined in the first quarter 2006 on corporate-wide risk management initiatives and European renewals that were impacted by lower property rates and foreign exchange movements, however the slowdown was offset by a 52.6 percent increase in net investment income.

?I believe we will see continuing robust P&C market conditions and returns as renewals proceed through the remainder of the year,? said XL president and CEO Brian O?Hara .

RenaissanceRe benefited from a lack of big catastrophes, a boost from prior-year reserves and improved pricing and terms which allowed it to increase its managed catastrophe reinsurance premium by 23 percent.

?We are well positioned to participate in the hardening property catastrophe market we now see for this year,? chief executive Neill Currie said in a statement.

Ace Limited also posted record first quarter income despite paying an $80 million bid rigging settlement with the states of New York, Connecticut and Illinois.

Evan Greenberg, president and chief executive officer of Ace Limited, expects revenue growth to pick up in the second quarter.

?We are well-diversified, and while certain of our businesses are under growth pressure, we have growth opportunity in other areas of our business ,? he said.

Ace like many of the other companies reduced exposure to catastrophes such as hurricanes and earthquakes during the quarter. The company also plans to reduce its potential losses from US wind exposure between 40 percent to 50 percent during the second quarter.

?We are staring down the barrel of a gun at a very active wind season,? Mr. Greenberg said.

Low frequencies of catastrophic and large losses in the first three months of the year allowed PartnerRe Ltd. to kick off its first with a 73 percent improvement in income over the previous year. ?Competition remains significant in markets and lines not affected by 2005 storms and we will deploy our capital cautiously within those markets. Conversely, US property pricing continued to accelerate in the April 1 renewals and we expect to respond to that trend with increased capacity,? said PartnerRe president and CEO Patrick Thiele.

Financial guaranty reinsurer RAM Holdings Ltd., which became the latest Bermuda insurer to go public on April 27, posted marginally higher first quarter income on higher premium sales and investment income. John Charman, chief executive officer and president of AXIS Capital, which saw its net income climb 29 percent over the 2005 first quarter, also noted increasing competition in geographies and lines of business not exposed to peak natural perils.

?We expect that the structural shift in the marketplace commenced last year will intensify and broaden throughout the year and our underwriting operations are prepared to take advantage of these positive developments,? he said.

While changed estimates for the 2005 hurricanes substantially reduced Everest Re?s first quarter earnings, chairman and CEO Joseph Taranto is eyeing new growth opportunities in property reinsurance as well through new insurance programs.

Platinum Underwriters CEO Michael Price sees opportunities to write a ?significant, well-priced and diverse portfolio? of treaty reinsurance business as a result of current market conditions.

IPCRe CEO Jim Bryce sees a substantially improving rate environment in the US and more encouraging signs outside the US as a result of signs of a hard market.

While Aspen?s income fell after a refocus of its property catastrophe exposure which resulted in a major reduction in critical zone exposures and premium, CEO Chris O?Kane is encouraged by strengthening of critical zone catastrophe pricing which will enable Aspen to replace considerable parts of the business that was rejected with similar exposures at much better prices as the year advances.

First quarter income at Montpelier Re Holdings, which was one of the hardest hit reinsurers after last year?s record hurricane season, declined after it cut exposure to high risk areas and didn?t re-new certain types of reinsurance.

Anthony Taylor, Chairman and CEO deemed the period a ?satisfactory transitional quarter? which saw the company?s net income and combined ratio return to acceptable levels while its net loss reserve position on the 2005 storms was stable.

All however it not certain in Bermuda?s insurance marketplace. Max Re expects to post income for the three months ended March 31, 2006 of $74.2 million, or $1.17 per share, but it has been unable to release its results due to an uncompleted internal probe into risk transfer issues of three finite risk contracts as well as accounting for certain other contractual features. Last Friday, the company announced it may be delisted from the Nasdaq.

Two other Bermuda companies are now considering liquidating or selling as a result of the hurricane losses and resulting downgrades.

PXRE Group lost 65 percent of its inforce business after it doubled estimates for losses for Hurricanes Katrina, Rita and Wilma earlier this year. While a lack of significant catastrophes and adverse development on loss reserves allowed the reinsurer to post 2006 first quarter income of $41.6 million compared with$22.7 million in the first quarter of 2005, Jeffrey L. Radke, president and chief executive officer of PXRE Group, said that it is unlikely such ?encouraging? levels of profitability will be repeated in future quarters.

The company in conjunction bank Lazard continues to explore its strategic alternatives as more than a dozen law firms pursue securities class actions.

Quanta Capital posted a net loss in the first quarter of 2006 of $17.1 million as a result of its downgrade and the company?s ability to retain and write business in all product lines. ?We have written lower premium volumes and have recognised lower earned premiums in most of our product lines. Our results reflect just one month of operations in the post downgrade environment and we believe the impact of the downgrade will become more severe in Q2 and beyond,? said Quanta CFO Jonathan Dodd in the company?s conference call.

The company is exploring opportunities with a number of entities as well as the possibility of placing the US and Bermuda insurance and reinsurance operations in the run off along with Quanta Europe. The company believes its Lloyd?s syndicate and ESC remain viable business platforms.