Bermuda-based Allied World Assurance Holdings, Ltd yesterday reported net income of $71.6 million for the third quarter ? a 75 percent jump on the $40.9 made during the same period last year.

AWAC CEO Michael Morrison said of the quarters earnings: "Allied World continues to produce exceptional growth and earnings. We are pleased to report $1.25 billion in gross written premium through the third quarter of this year, passing the $1 billion milestone in annual gross written premium in our second full year of operation."

Mr. Morrison also reported on progress by AWAC in its move into international markets: "Allied has now fully launched a new reinsurance company based in Dublin and established a London branch of our Irish direct insurance company. We are well positioned for growth in the EU markets."

AWAC said its net income included $3.9 million of net realised investment gains.n total AWAC gleaned $417.3 million in new business during the quarter, a 50 percent increase in gross written premiums over the same period in 2002.

Net premiums earned in the quarter were $322.6 million compared to $136 million in the quarter ending September 30, 2002Acquisition costs and general and administrative expenses totalled $59.8 million compared to $22.7 million last year in the third quarter.

AWAC said this put its expense ratios at 18.5 percent and 16.7 percent, respectively. Underwriting continued to be profitable for the company, with its combined ratio for this quarter coming in at a low for the industry of 86.2 percent compared to the higher 91.2 percent combined ratio recorded during that quarter, last year.

At the end of the third quarter, AWAC shareholders' equity stood at $1.91 billion, an increase of 13.7 percent over the $1.68 billion reported at December 31, 2002, and 16.5 percent over the $1.64 billion reported at September 30, 2002.

Mr. Morrison concluded: "Our disciplined underwriting approach continues to be clearly reflected in our results. Strong third quarter results and a combined ratio year to date of 86.7 percent reflect our commitment to quality underwriting and prudent expense management."