Flagstone Re boosted its profits by almost $10 million for the third quarter 2007, while exceeding the annualised growth target of 17 percent set when the company was formed.

Net income rose from $56.9 million in the third quarter 2006 to $66.2 million for the same period this year.

Meanwhile gross premiums written almost doubled for the third quarter 2007 to $123.7 million from $61.9 million last year, mainly due to increased client participation in programs and the addition of new clients due to its latest capital base and growth of its franchise, allied to the acquisition of the controlling interest in Island Heritage in July 2007 which resulted in the inclusion of $21.8 million in gross premiums for the quarter.

Losses for the quarter included $10.3 million, down to the flooding in southern and central England and Wales in July, but it was not impacted by terms of prior estimates for Windstorm Kyrill, the June UK floods and the flood losses in New South Wales, Australia.

CEO David Brown said: "The third quarter produced a very pleasing result. Our gross premiums written for the year to date are up 77.6 percent over last year, after eliminating the impact of Island Heritage which we consolidated for the first time this quarter.

"This growth was achieved in a careful manner without sacrificing quality or terms and conditions.The quarter was not without losses, but they were moderate events for us and reserves established in prior quarters proved to be solid."

Chairman Mark Byrne added: "We regard the increase in diluted book value per share, measured over intervals of three years, as the best single measure of our performance for shareholders. Since the founding of the company the annualised growth is 18.9 percent, which is better than our 17 percent target."