Bermuda-based IPC Re has posted solid results for the third quarter, on the heels of its strong results for the first two quarters of the year.

The company last night said its operating income (excludes net realised gains and losses) was $46.6 million for the period ended September 30, 2002 compared to an operating loss of $70.7 million for the same period last year, when the company would have been hit by losses from the September 11 terrorist attacks.

And net income for the three month period stood at $45.8 million in contrast to a net loss of $69 million for that period a year ago.

Although cat insurers did have their share of catastrophic events during the third quarter 2002 - including the European floods - IPC said its careful underwriting approach had meant it only incurred limited losses.

CEO Jim Bryce said: "Typically the third quarter is the peak period for catastrophe losses around the globe, and 2002 was no exception. There was significant flooding in eastern and central Europe, together with some floods in France. In addition, there was flooding in Korea and China as a result of typhoons, one of which also struck Japan.

"Naturally, all major players in the global reinsurance arena would have suffered some losses as a result, and IPC is no exception." But Mr. Bryce added: "Due to our disciplined underwriting approach, particularly in terms of not writing business which we believe is inadequately priced, we avoided any significant losses from Asia, and have incurred only limited losses from the floods in Europe. As a result, our third quarter 2002 results are in line with the record results achieved in the first two quarters of this year." Meanwhile the company reported it had written greater business during the period with gross written premiums of $35.5 million in the third quarter of 2002 or 7.4 percent over the $33.1 million written in the third quarter of 2001.

IPC said that given the hardening of the market, rate increases had generally been in the range of 10 to 15 percent for loss free contracts, with greater increases on loss impacted contracts.

This brought total written premiums for the nine months ended September 30, 2002 to $242.7 million - an increase of 93.1 percent over the $125.7 million of premiums written in the first nine months of 2001.

IPC also said it had benefited from its increased capacity with the more than $500 million in additional capital raised last year as it sought to satisfy the increased requirements of its clients. And the company said it had written new business which reportedly offset any business which was not renewed because of unsatisfactory terms and conditions.

Speaking of IPC's potential for business in the next year, Mr. Bryce said the company could profit from the uncertainty European insurance market: "The process for negotiating 2003 renewals has just begun, and we optimistically enter this period from a strong foundation, especially in light of the dislocation currently taking place in the European reinsurance marketplace.

But the development has led the company to postpone announcing a dividend at this time: "Because of the opportunities that this dislocation may present us between now and early January, the Board of Directors has decided to defer the decision regarding the declaration of a dividend until we can better assess the extent of those opportunities," he said.