Bermuda-based insurer PXRe saw net income rise more than 30 percent in the first quarter to $30.9 million.

The company's profits in the first three-month period of the year compared to net income of $23.6 million a year ago.

Net operating income per share, which excludes certain items including realised gains on investments, was $1.27 per share in first quarter compared to $1.04 a year ago. Net income per share was $1.18 during the period compared to $1.04.

Management said the company's strong first quarter results could be largely attributed to strong underwriting income ? which grew by 26 percent ? although PXRe said three-quarters of the business it would write this year was already "bound".

PXRe president and CEO Jeffrey Radke said: "Our first quarter earnings reflect a healthy market environment and the continued strength of our franchise, particularly in our catastrophe and risk excess business."

However, a decision to get out of writing certain lines ? including the area of finite risk ? was said to have pushed down revenue levels during the quarter. An earnings release said that revenue declined in the first quarter to $76.5 million from $91.5 million in the same period a year ago.

Net premiums earned for the quarter were also down at $69 million compared to $84.8 million during the first quarter of 2003.

PXRe said however that exiting finite risk, which was defined as "a noncore business" was offset by continued growth in the company's "core" catastrophe and risk excess unit. This area saw net earned premiums grow by seven percent to $66.2 million from $61.7 million during the same period last year.

Mr. Radke pointed out that the company also paid out more than it might have in nonoperating expenses with severance and a change in accounting costing PXRe a stiff extra nine cents per share.

"The positive results of the quarter are even more pronounced in light of the nonoperating expenses of nine cents per share," and he said the company had "achieved our underwriting goals during the January and April renewal periods."

The company predicted earnings in a range of $4.45 to $4.85 per share for the year, "given normalised catastrophe levels".