Bermuda-based property catastrophe reinsurer IPC Re this week reported 13 percent growth in net income with earnings of $74.1 million during the second quarter compared to $65.6 million a year ago.

The growth in income was directly in line with growth in business written the company revealed, saying that during the quarter ending June 30, IPC posted gross premiums of $72.9 million in the second quarter of 2004, compared to $64.6 million in the second quarter of 2003, an increase of 12.9 percent.

IPC CEO and president Jim Bryce said the company's increase in profit and business could be attributed to its consistent approach - with the company not having wavered from a business plan to focus on writing property catastrophe reinsurance since it set up more than a decade ago to address a void in capacity after Hurricane Andrew - as well as a “very benign quarter in terms of catastrophe activity”.

He continued: “We have just completed the mid-year renewals, and I am gratified to report that they were conducted in an orderly manner, and that both pricing and terms continued to be satisfactory.”

IPC's net operating income, which is defined as net income less net realised gains and losses stood at $72.1 million, compared to $63.2 million during the second quarter of 2003.

For the first six months of the year, net operating income of $140.1 million was recorded in contrast to $127 million, during the first half of 2003.

In addition, the company reported that only $6.4 million of premiums had been ceded to retrocessionaly reinsurers, although higher than the $3.7 million in reinsurance protection that had been sought a year prior.

IPC said ceded premiums had IPC said ceded premiums had increased because the level of business written was higher as well as increases in retrocedents' participation in our Surplus treaty, and increased capacity in our excess of loss retrocessional facility.

The company also earned net premiums of $78.1 million in the second quarter of 2004 compared to $72.3 million in the second quarter of 2003, an increase of 8.1 percent.

The increase in net premiums earned was also said to reflect an increase in business written.

For the six month period, net premiums earned were $161.7 million, an increase of 10.3 percent over the $146.6 million earned in the corresponding six month period of 2003.

On the investment side, the company saw earnings of $14.1 million during the quarter compared to $11.7 million in the same period last year. Earnings from investments during the second quarter, 2004 was said to include a dividend of $2.6 million from a stake in a fund of hedge funds.