New offices and new strategy at Max Re have been accompanied by improved profits for the first quarter of 2003.

The Bermuda-based insurer moved into new offices on Pitts Bay Road on April 1 and announced net income of $14.5 million for the first quarter of 2003, compared to $2.6 million for the same period in 2002.

Max Re recently varied its original business model which focused on alternative investments and structured reinsurance products and expanded its property and casualty operations to three distinct divisions.

Structured reinsurance contributed $205 million in gross written premiums, while the recently added areas of alternative risk and traditional reinsurance contributed $102 million and $114 million respectively in gross premiums written for the first quarter.

The company wrote no annuity and life insurance during the quarter and focused instead on rising rates in the property and casualty sector notching up gross written premiums of $430.5 million.

New property and casualty insurance underwriting operations launched in this first quarter contributed $9 million in gross premiums written.

Net premiums earned from these four areas amounted to $143 million.

Improved investment results also contributed to improved performance compared to the same period in 2002.

Robert J. Cooney, chairman, president and chief executive, said: “Our first quarter produced record premiums written largely attributable to strong growth in traditional risk transfer reinsurance which represented over 28 percent of the net premium revenue.

“The commencement of insurance underwriting operations midway through the quarter has been well received in the marketplace and contributed $9.0 million in premiums written in the quarter.

“Our favourable net operating income results this quarter is jointly attributable to increasing profits from property and casualty alternative risk and traditional reinsurance underwritten and a return of 3.10 per cent on the alternative investment portfolio.”

Total losses and expenses for the quarter were $152 million. The move to the new building resulted in modest operating expenses.

But increased personnel costs was a more significant factor, according to a company spokesperson.