Max Re Capital beat analysts? estimates on Friday when it reported a third quarter loss of $41 million or 89 cents a share against a net loss of $9.02 million, or two cents a share, in the year-ago period.

Analysts polled by Thomson First Call had estimated a loss of $1.04 a share, CBS Marketwatch reported. Revenue at the Bermuda-based reinsurer rose 2.7 percent, to $347.8 million from $338.8 million, and gross premiums were $288 million compared with $280.8 million last year.

Max Re chairman and chief executive officer Robert Cooney attributed the wider loss to the effects of Hurricane Katrina.

?Losses from natural catastrophes, principally Hurricane Katrina, during the period had a $112 million negative impact on our third quarter results,? he said. ?We were pleased with our MDS portfolio return for the period which exceeded our quarterly expectation and partially mitigated the natural catastrophe losses.

?Max Re?s diversification allowed us to produce better results in the third quarter than most of our competitors which, along with our $246.0 million secondary common share offering in October 2005, leaves us well positioned to participate in the expected attractive market for our products in upcoming months.?

Net operating loss, which represents net loss reduced by net realised gains on sale of fixed maturities, for the quarter was was $42.6 million, or a net operating loss of $0.92 per diluted share, compared with a net operating loss of $9.9 million, or a net operating loss of $0.22 per diluted share, in the year-ago quarter.

For the nine months ended September 30, 2005, the company had net income of $18.1 million, or net income of $0.36 per diluted share, compared to $46.6 million, or $0.96 per diluted share, for the same period in 2004.

For the nine months ended September 30, 2005, the company had net operating income of $15.3 million, or net operating income of $0.31 per diluted share, compared to $42.5 million, or $0.87 per diluted share, in 2004.

Net investment income rose to $27 million, from $20.1 million in 2004, with much of the gain attributed to increased cash and fixed maturities balances held. Net investment income for the first three quarters of the year increased $17.1 million, to $75.7 million from $58.6 million for the same period in 2004.

Prior to the earnings release on Friday, Max Re shares closed up 27 cents to $23.54 on the New York Stock Exchange.