Max Capital Group Ltd. more than doubled its profits for the third quarter 2007 compared to last year due to solid unwriting and sound investments in the face of the growing credit crisis and sub-prime mortgage exposures.

The Hamilton-based specialty insurer and reinsurer for corporations, public entities, property and casualty insurers and life and health insurers reported net income of $66.8 million or $1.05 per diluted share for the three months ended September 30 compared to $26.5 million or 42 cents per diluted share for the same period in 2006.

Net operating income, which represents net income excluding after-tax net realised gains and losses on sales of fixed maturities, was similarly impressive for this year's third quarter, at $68.4 million, or $1.08 per diluted share, in contrast to $26.8 million or $0.42 per diluted share last year.

The insurance/reinsurance company's nine-month results for 2007 were in line with those of the third quarter, recording net income of $240.9 million, or $3.77 per diluted share, compared to $121.5 million, or $1.91 per diluted share, for the nine months ended September 30, 2006.

For the nine months ended September 30, the company had net operating income of $243.9 million or $3.81 per diluted share, compared to $128.8 million or $2.03 per diluted share, for the nine months ended September 30, 2006.

W Becker, chairman and CEO of Max Capital, said: "Max continues an excellent year with third-quarter results reflecting significant underwriting income and continued solid investment performance. Our internal review of loss reserves during the third quarter permitted us to release $12.4 million of prior-period reserves.

"Additionally, we entered an agreement to settle a large block of prior-period reserves on one of our structured product contracts for significantly less than originally estimated. We are very pleased with this quarter's performance and the depth of earnings opportunities it represents. We look forward to carrying this earnings momentum into the year-end as we continue to build the company."

Gross premiums written for the third quarter this year were $223 million, of which $160.8 million came from property and casualty underwriting and $62.2 million from life and annuity underwriting, compared to $177.9 million, $177.3 million of which was from property and casualty underwriting and $600,000 from life and annuity underwriting, for the three months ended September 30, 2006.

Max closed up 67 cents to $27.46 on the Nasdaq Stock Exchange.

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