The trend of Bermuda insurance companies profiting from increased business in the wake of a void in capacity following the September 11 terrorist attacks is holding up if second quarter results are anything to go by.

Case in point are the results released by Bermuda-based companies IPC Re, White Mountains and newcomer Allied World Assurance Company (AWAC).

Increases in business for these companies is in line with the news from other Bermuda insurers who have generally posted gains in business written even when posting a net loss for the quarter.

IPC Re saw significant gains not only in business written but in income including from investments.

Investment income got a boost with the company's capital injection of $546 million late last year which also allowed the company to write more business. CEO James Bryce said: "This is reflected in our premium volume which has increased significantly without reduction in the quality of the business written..."

AWAC which was reporting after only two full quarters in operation, wrote gross premiums of $278.5 million.

CEO Michael Morrison attributed the company's volume of business to the hardening insurance market and the company's willing ness to write business that had turned away by other insurance companies.

"Rate hardening continues as numerous insurers reduce their lines on many classes of business.

"As the general capacity shortage continues, our ability to provide a market has been welcomed by insurance buyers and their representative brokers," he continued.

Meanwhile Bermuda-based White Mountains said it had also seen good business volume in the current market, including from newly established reinsurer Montpelier, in which it holds a nearly 30 percent stake.

Montpelier reported gross premiums of $340 million for the six months ended June 30, 2002.