IPC Holdings saw its profits slump by just over $2 million for the third quarter in the wake of a series of earthquakes and hurricanes across the world.

Its net income dropped from $115 million, or $1.60 per common share in the same quarter last year, to $113.2 million or $1.63 per share this year.

Operating income was $82.5 million or $1.19 per share compared to $105.9 million or $1.47 per share for the third quarter of last year.

In the third quarter, IPC wrote gross premiums of $43.4 million, compared to $56.3 million year-on-year.

Excess of loss premium adjustments were $3.1 million less than in the nine months ended September 2007, compared to the corresponding period last year, while reinstatement premiums were $10.6 million more in the last nine months in comparison with the same time in 2006, mostly due to accruals resulting from anticipated claims from the UK floods in June and July and windstorm Kyrill.

President and CEO Jim Bryce said: "Although it has been a relatively quiet summer in the western Atlantic, it has not been a completely benign period, as we have seen multiple events of minor to medium severity in various parts of the world.

"We believe that these events, combined with the fact that we have seen strong earthquakes and two category 5 hurricanes occur this summer, should remind underwriters of the need to maintain discipline if we are to attain the appropriate long-term return on equity for shareholders."