Bermuda-based Aspen Insurance Holdings Ltd. benefited from improved investment income as it reported a 36.8 percent improvement in net income for the first nine months of the year on Friday.

Aspen had record net income of $353.8 million for the first nine months of 2007 and record $117.2 million net income for the third quarter, an increase of 23.4 percent.

The reinsurer said its combined ratio for this year's first nine months was 84.1 percent copmpared to 84.3 percent in 2006.

Gross written premiums for this year's first nine months were $1.51 billion, down from last year's $1.65 billion over the same period.

For the 2007 third quarter, Aspen reported $10 million in catastrophe losses for the quarter, which included $7 million in claims for July flooding in the United Kingdom.

Aspen's positive third-quarter results are largely due to its net investment income of $72.4 million, which was up 53.1% compared with the third quarter of 2006.

The reinsurer's combined ratio was 84.5% for this year's third quarter, up from 81% a year ago.

"I am very pleased with the record third quarter results Aspen today announced, with net income up 23 percent to $117 million from the same period in 2006, year to date earnings per share up 44 percent to $3.67 and book value per share of $24.46," chief executive officer Chris O"Kane said on Friday.

"These strong results reflect our ongoing focus on managing, diversifying and leveraging our underwriting platforms and the excellent performance of the investment portfolio."

During the quarter, Aspen enetred the global excess casualty insurance market with the establishment of a dedicated underwriting team in Dublin and also entered the professional liaibility insurance market with a focus on business in the UK and Australia.

Aspen's share price rose 48 cents or 1.79 percent to close at $27.30 on Friday.