IPC Holdings said yesterday that third-quarter net income was $115 million, or $1.60 a share, up from a net loss of $656.6 million, or $13.57 a share, a year earlier.

Operating earnings, which exclude net realised gains and losses on investments, were $105.9 million, or $1.47 a share, compared to operating losses of $654.6 million or $13.53 per share for the third quarter of 2005.

IPC was expected to make $1.23 a share, according to the average estimate of eight analysts surveyed by Thomson First Call.

?The escalating prices seen for US (reinsurance) business during 2006 will continue for the majority of US renewals at January 1, 2007,? chief executive Jim Bryce said in a statement.

Mr. Bryce added: ?We see continuing disarray in the retrocessional arena, which has spurred continued ?sidecar? formation. Nevertheless, demand continues to exceed supply, primarily for national US accounts and retrocessional capacity.

?We have also witnessed the virtual disappearance of ?worldwide? territorial coverage, which could result in upward pressure on rates outside the United States.

?We believe IPC is strongly positioned to provide our clients with much needed capacity as we enter the 2007 renewal season.?

IPC said gross premiums written fell to $56.3 million from to $166 million in the third quarter of 2005, primarily due to the impact of accrued reinstatement premiums resulting from estimated incurred losses arising from hurricane Katrina in the third quarter of 2005.

?Reinstatement premiums were $117.3 million less in the third quarter of 2006, compared to the third quarter of 2005, the company said.

IPC said it wrote new business of $2.7 million and did not renew business of $9.3 million.

IPC earned net premiums of $107.8 million in the third quarter of 2006, compared to $207.3 million in the third quarter of 2005. This decrease is due to the impact of the reductions to reinstatement premiums, as discussed above.

Net investment income rose to $25.4 million from $15.7 million.

IPC?s net losses for the quarter were $7.9 million, compared to $856 million in 2005, which included $4.9 million for super-typhoon Shanshan, which made landfall in Japan in September, 2006.