Bermuda-based Lancashire Holdings has doubled its after-tax profit for the third quarter to $105.2 million and reaffirmed its projection of ending the year with at least a 20 percent increase in its gross premiums written.

During the third quarter the company saw its gross premiums increase by 33 percent to $147.3 million and its combined ration fell to 44 percent.

For shareholders the profit works out at $0.51 per share.

In a statement the company said it had managed to "navigate a higher than normal frequency of medium-sized worldwide natural catastrophes."

Richard Brindle, CEO said: "A large driver is our strategy to focus on a diversified insurance portfolio, rather than a narrow focus on natural catastrophe business.

"Rates are softening a little faster than anticipated. Market cycles are inevitable but unpredictable. Rather than second-guess the timing of events, or lack of events, our strategy is to stay nimble so we can react to a market which is constantly changing."

The company's directors have authorised a $100 million share buyback.

Mr. Brindle added: "Should rate softening continue, we expect our 2008 portfolio will require less capital than we currently have. In addition to the $100 million share repurchase programme, we would also anticipate returning at least 50 percent of the profits realised in 2007 back to shareholders via a single substantial dividend."