Allied World Assurance Company suffered a slight downturn in profits for the third quarter with a drop of $5 million from $114 million in 2006 to $109 million for the same period this year.

Gross premiums written were also down, this time by 23.8 percent at $276.3 million compared to $362.5 million last year, with $32.8 million of that decrease down to the timing of renewal and estimated premium adjustments in its reinsurance segment.

One large treaty that previously renewed in the third quarter of 2006 was renewed again in the second quarter of 2007 for approximately $9.7 million, and there was a reduction in estimated premium adjustments of about $9.7 million recorded in the third quarter this year compared to the same period last year.

The combined ratio was 84.1 percent in the third quarter compared to 76.9 percent a year ago.

President and CEO Scott Carmilani said: "Allied World continues to produce consistent results and to grow shareholders' book value. Through September, the company has increased diluted book value per share by 19.8 percent, on an annualised basis. The company has benefited from significantly increasing investment income and from a light catastrophe period.

"We are in an increasingly challenging marketplace, characterised by increased competition and rate declines in direct insurance business. We continue to put our highest priority on underwriting discipline. At this time, we are being very selective in underwriting business that meets our target risk and return profile.

"However, we will continue to pursue what we believe are good business opportunities and diversify our global operating platforms. Specifically, we are engaging highly talented teams of people and expanding our platform and product offerings in carefully selected markets and geographies in order to pursue the best returns possible."