Bermuda-based IPC Holdings, Ltd. has reported an operating loss of more than $70 million for the third quarter of 2001 after being hit by the after-effects of the terrorist attacks on September 11.

IPC reported an operating loss, which excludes net realised gains, of $70.7 million or $2.82 per share, for the quarter ended September 30, 2001, compared to operating income of $15.0 million, or $0.59 per share, for the third quarter of 2000.

President and Chief Executive Officer Jim Bryce said: "IPC stands ready, as always, to execute its promise to pay, which is what we pledge every time we enter into a reinsurance contract. By recognising these obligations, our financial results have obviously been impacted, and what would have been one of our best quarters for 42 months, is now our worst on record.

"However, as we have said before, it is because of major catastrophic events that IPC is in business, and why we adhere to strict, conservative underwriting discipline. The next few months will be challenging for us all, but with challenges come opportunities."

Mr. Bryce said that the events of September 11th have had a devastating effect on the insurance industry, not just in terms of financial loss, but also the human tragedy, given the number of industry professionals lost among the thousands of missing.

And he added it was time for insurance and reinsurance companies to act professionally and responsibly, and to ensure that they do their utmost to pay what is due as quickly and effectively as possible, to provide at least some measure of relief to those who have suffered.

The company reported gross written premiums were $33.1 million in the third quarter of 2001, an increase of 214.2 percent, compared to $10.5 million written in the third quarter of 2000.

The company said premiums were higher because of rate increases, generally in the range of ten percent to 25 percent for loss free contracts, with greater increases on loss impacted contracts.

In addition, IPC said it wrote premiums for new business and additional business for existing clients, which more than offset business which was not renewed because of unsatisfactory terms and conditions, and reductions due to declining rates of exchange for certain currencies."

Net premiums earned in the quarter ended September 30, 2001 were $45.1 million, compared to $20.2 million earned in the quarter ended September 30, 2000, an increase of 123.4 percent.

Net loss and loss adjustment expenses incurred were $116.7 million in the quarter ended September 30, 2001, compared to $7.8 million for the quarter ended September 30, 2000.

Incurred losses in the quarter were primarily the result of the terrorist attacks on the World Trade Center, estimated claims from which amounted to $112.0 million.