Allied World Assurance Company Holdings Ltd. overcame adverse market trading conditions to record an increase in profits of more than $20 million.

They reported net income of $123.3m or $1.86 per diluted share for the second quarter of 2007 compared to $102.4m or $2.02 per diluted share last year.

The company also saw operating income rise from $112.1m or $2.21 per diluted share to $125.3m or $1.99 per diluted share year on year.

Gross premiums written were $530.5m in the second quarter, representing a 2.4 percent increase in contrast to $518.3m in 2006.

President and chief executive officer Scott Carmilani was pleased with the results considering the recent difficult business climate.

"Allied World continues to produce impressive results and generate strong book value growth for our shareholders," he said.

"This is our sixth consecutive quarter with operating income in excess of $100m and annualised operating income and net income return on average equity in excess of 20 percent. Enhancing the strong underwriting performance achieved in each of our business segments, we continue to reap the benefits of historically strong operating cash flows and significant investment income momentum.

"Despite the challenging market conditions that currently exist, we expect continued strong performance going forward as we continue to leverage our global operating platforms and diversified product lines to retain attractive business and find new opportunities that meet our return targets.

"We continue to be supported by strong ratings, a conservative balance sheet and an expanding invested asset base."