Bermuda-based Max Re Capital Ltd. reported first quarter income fell 14 percent to $36.8 million from $43 million in the first quarter of 2004. Operating income for the three months ended March 31 fell two percent to $36.4 million from $37.2 million for the three months ended March 31, 2004.

Gross premiums written for the first quarter of 2005 increased almost four percent to $455.7 million.

The company said that $312.5 million came from property and casualty underwriting and $143.2 million from life and annuity underwriting, compared to $439.5 million, all from property and casualty underwriting, for the three months ended March 31, 2004.

Robert J. Cooney, chairman, president and chief executive officer, said: ?Our gross premiums written grew in the first quarter largely attributable to increased volume in our life and annuity business.

?Our property and casualty underwriting produced excellent results with a combined ratio of 87.6 percent for the period. The strong underwriting performance allowed us to achieve reasonable net operating income for the quarter.?

The company said that an increase in net investment income in the first quarter of 2005 to $23.7 million is principally attributable to increased holdings of cash and fixed maturities.

Total revenue for the three months ended March 31 increased 32.3 percent to $348.1 million. The company attributes the growth to the 55 percent increase in net premiums earned over the same period in 2004, partially offset by the 62.6 percent decrease in net gains on alternative investments.

Book value per share at March 31 was $20.77 per share, compared to $20.45 at December 31, 2004.