Max Re Capital Ltd. posted second quarter income of $17.3 million Friday after market close, off 26 percent from the same period 2005.

Broken down, the Bermuda-based company posted income of 27 cents per share compared to income of 47 cents per share, for the three months ended June 30, 2005.

Operating income for the 2006 quarter was $22.6 million, or 36 cents per share.

Five analysts polled by Thomson First Call expected earnings of 59 cents per share.

Robert J. Cooney, chairman, president and chief executive officer, said in the company?s earnings release on Friday, ?Our second quarter results reflect continuing solid underwriting performance and a difficult environment for investment returns.?

Gross premiums written for the quarter increased 16 percent over the second quarter of 2005 due to additional property business written in 2006.

Losses and benefits were $164.7 million for the quarter compared to US$155.7 million for the same period in 2005. The increase in losses and benefits for the three months ended June 30, 2006 is principally attributable to the increase in premiums earned, the company said.

Net investment income for the 2006 quarter increased to $36.5 million, due to a year over year increase in cash and fixed maturities balances and higher yields on fixed maturities. Net losses on alternative investments were $5.6 million or a negative 0.39 percent rate of return, compared with net gains of $3.6 million, a 0.26 percent rate of return, for the second quarter 2005.

Max Re closed unchanged at $23.08 on volume of 159,500 shares on the Nasdaq Stock Exchange but slipped four cents to $23.04 in after-hours trading.