Allied World Assurance Holdings Ltd. posted a $203.5 million loss for the third quarter 2005 compared with a loss of $64.7 million in the same period a year ago. The Bermuda-based property and casualty insurer estimates third quarter losses of $290 million resulting from hurricanes Katrina and Rita.

For the nine months ending September 30, 2005, AWAC?s net loss was $67.6 million, compared to income of $94.1 million for the same period 2004. The third quarter 2005 operating loss was $208.3 million compared with a 2004 third quarter loss of $67.5 million.

President and chief executive officer Scott Carmilani said: ?The catastrophe storms of the third quarter 2005 caused the most significant property and business interruption losses in history. Hurricanes Katrina and Rita combined produced industry losses in excess of $40 billion. Our net losses will be approximately $290 million, very much in line with our original estimates for Katrina and Rita. Although we sustained significant losses, our exposure management programme sufficiently protected our capital position.?

Gross premiums written were $322 million in the third quarter 2005, a decrease of 20 percent compared to $402.5 million written in the third quarter 2004. Gross written premiums for the nine months ending September 30, 2005 declined more than eight percent to $1.2 billion as the company?s property- related aggregate exposures continued to reduce during the quarter and throughout the year.

Mr. Carmilani said: ?We now find ourselves well-positioned to take advantage of the expected hardening property market and selected specialty casualty business. We will further expand our distribution platform later this year with the opening of two new regional offices in the US to better market and distribute our products and services.?

The company?s combined ratio for the quarter ended September 30, 2005 was 181.3 percent compared with 132.5 percent for the quarter ended September 30, 2004. For the nine months ended September 30, 2005, and 2004, the combined ratios were 118.7 percent and 101.4 percent, respectively.

Investment income in the quarter ended September 30, 2005 was $49.7 million, and $33.3 million in the third quarter 2004, an increase of 49.2 percent.

On September 30, 2005, shareholders? equity was $1.51 billion, compared to $2.14 billion reported at December 31, 2004. In March 2005, AWAC had a special one-time cash dividend of $3.31 per common share or approximately $500 million in aggregate.