Bermuda-based Allied World Insurance saw its net income rise 15 percent during the 2008 first quarter.

The company reported $130.9 million, or $2.55 per diluted share, for the first quarter 2008 compared to net income of $113.9 million, or $1.83 per share, for the first quarter 2007.

President and chief executive officer Scott Carmilani said: "Allied World continues to post very strong results despite the competitive market conditions that currently exist. The company is reporting $128.0 million of operating income for the quarter. We also increased our diluted book value per share by 27 percent on an annualised basis to $45.44 per diluted share.

"Gross production was down 9.5 percent for the quarter due to a lower premium rate environment and some non-renewal business where rates were simply inadequate. We continue to maintain our underwriting discipline and to leverage our strong ratings and balance sheet." Gross premiums written were down nine percent to $ $396.9 million because of non-renewal of business that did not meet Allied's underwriting requirements, increased competition and decreasing rates for new and renewal business in each of their operating segments the company said.

The combined ratio was 78.2 percent in the first quarter 2008 compared to 79.7 percent in first quarter 2007. The loss and loss expense ratio was 52.5 percent in the first quarter 2008 compared to 57.9 percent in the first quarter 2007.

During the first quarter 2008, the company recorded net favourable reserve development on prior accident years of $53.1 million, a benefit of 19.4 percentage points to the company's loss ratio for the quarter. Of this net favourable development, $33.2 million related to the 2005 windstorms.