Profits of $190.8 million were made by Renaissance Re in the opening three months of the year, compared with $178.9 million during the same period in 2006.

The improvement in profitability came despite the company writing $116 million less in gross premiums.

RenRe’s results also easily beat analysts estimates that net income for shareholders would by $1.80 per share according to 14 experts in a Thomson Financial survey — it turned out the net income was $2.63 a share and operating income worked out at $2.57.Fitch agency earlier affirmed the company’s insurer financial strength rating as an ‘A’.

Neill Currie, chief executive officer, said: “We are pleased to report another highly profitable quarter with an annualised operating ROE (return on equity) of 29 percent and over six percent growth in book value per share in the quarter.

“We generated solid underwriting profits, despite European windstorm Kyrill, and our investment portfolio generated strong returns for the quarter.

“We are maintaining our disciplined underwriting given current market conditions, but finding good opportunities in our core markets to build upon an already attractive portfolio of risks.”

The company reported $186.7 million in first quarter operating income available to common shareholders, which compared to $195.7 million in the first quarter of 2006. Operating income excludes net realised investment gains of $4.1 million and net realised investment losses of $16.8 million in the first quarters of 2007 and 2006, respectively.

Operating income per diluted common share was $2.57 in the first quarter, compared to $2.73 in the first quarter of 2006.

Net income available to common shareholders was $190.8 million or $2.63 per diluted common share in the quarter, compared to net income available to common shareholders of $179.0m or $2.49 per diluted common share year-on-year.

The gross premiums written in the first quarter were $632.7 million, a drop from the $748.3m in the first three months of 2006. The combined ration went from 53.7 percent to 65.6 percent.