IPC Holdings Ltd. last night posted a 43 percent improvement in its first quarter 2006 earnings and said premiums for US reinsurance had risen, but noted non-US rate increases were not ?robust?.

IPC said it earned $62.6 million in the first three months of 2006 compared with $44 million in the quarter ended March 31, 2005.

Net income was 86 cents per share, compared to 91 cents per share in 2005. Per share earnings are down for most Bermuda-based insurers after they issued new capital in the wake of the 2005 hurricane season.

President and chief executive officer James Bryce said: ?We were gratified by our US clients? recognition of the losses of 2005 and the increased cost of capital that we, and all reinsurers, now face, as reflected by price increases on US business that renewed on January 1, 2006.

?However, we were less satisfied by the lack of robust increases achieved on non-US business. The current trend during the second quarter to date is still a substantially improving rate environment in the US, and more encouraging signs outside of the US.?

For the first time since the early 1990s, Mr. Bryce said there were signs of a ?hard market?, characterised by a shortage of capacity for US national accounts, and/or retrocessional business generally, irrespective of price.

He noted that new capacity He noted that new capacity that entered the market at the beginning of the year has been utilised in a cautious and disciplined manner to date.

?As a result of the events in 2005, there is a greater awareness of and sensitivity to both frequency and severity of catastrophic activity, again reflected by increased client retentions combined with robust pricing, as well as more conservative risk management and enhanced risk selection methodology, which we at IPC continue to adopt and develop,? he said adding that the company is optimistic about conditions in the property reinsurance industry for 2006 and 2007.

Gross written premiums increased $32.6 million in the first quarter of 2006 over the 2005 first quarter on price increases and new business. The company also wrote new business of $17.9 million, which Mr. Bryce said more than offset $13.9 million of business that was not renewed.

In the quarter ended March 31, 2006, IPC incurred losses and loss adjustment expenses of $22.1 million, compared to $37.9 million for the first quarter of 2005. The company has estimated total claims of $8 million from cyclone Larry, which struck Queensland, Australia on March 20, 2006.

The balance of the incurred claims in the quarter relate to an explosion which occurred in the UK in December 2005, and increases to loss estimates from prior periods, primarily hurricane Rita.

Shares of IPC Capital rose two cents yesterday to close at $26.79 on the New York Stock Exchange.