catastrophe reinsurer IPC Holdings, Ltd. made $18.5 million, or 71 cents per share, in third quarter.

The earnings are almost double last year's quarter to September 30 when the company reported profit of $9.8 million, or 38 cents per share.

IPC also said that third quarter operating income, before realised capital gains and losses, was $18.9 million compared to $10.2 million.

"We had an outstanding quarter with significant increases in written premiums and investment income contributing to our improved core earnings,'' IPC president and CEO John Dowling said.

"Of greater importance, our earnings increase was accomplished during a period when several large storms affected the US, including hurricane Fran, which was the fourth largest wind-related catastrophe in US history,'' he said.

For the quarter, premiums written rose 11.4 percent to $22.5 million from $20.2 million.

Premiums written for the nine months was up 10.4 percent to $103 million from $93.3 million. The increase came from not only from new clients but also increases from existing clients and were despite rate reductions and more competition, IPC said.

Quarter premiums earned were $28.9 million compared to $26.1 million, an increase of 10.7 percent. Nine month premiums earned were up 13 percent to $84.5 million from $74.8 million.

Total three month revenues were $35.9 million compared to $31.8 million. Nine months figures were $108 million and $91.4 million.

The company added that a larger investment base helped increase nine month net investment income 29.1 percent to $21.3 million from $16.5 million. Quarter net investment income rose 21.3 percent to $7.4 million from $6.1 million.

IPC's average amount of invested assets was up 20.8 percent for the first nine months compared to the earlier nine month period. Investment yield was 6.1 percent, up from the 5.7 percent achieved in the first three quarters of 1995.

Third quarter losses totalled $12.1 million, including the $10 million from Fran, compared to $17.1 million in third quarter 1995. Nine month losses were $22.3 million compared to $32.9 with loss ratio over that period 44 percent.

Losses were down substantially due to the lower number of major catastrophes affecting results, IPC said.

For the nine months, expenses were $16.3 million, which included $2.1 million related to the company's initial public offering in the first quarter and a bid for Tempest Reinsurance Company Ltd. Earlier nine month expenses were $13.1 million.

Acquisition costs and operating expenses were $5 million in third quarter compared to $4.5 million.

IPC's assets at September 30 were $552 million compared to $485.2 million, up 13.8 percent.

Shareholders equity was $476.8 million compared to $434.2 million nine months earlier.

John Dowling