Aspen Insurance Holdings Ltd. saw its profits dip by more than $15 million over the second quarter of 2009 after incurring $12.5 million in losses from the Air France disaster.

The insurer's net income dropped to $110.4 million or $1.14 per share in the second quarter compared to $126.9 million or $1.44 per share during the same period in 2008.

Its book value per share of $30.36 increased by $1.37 (4.7 percent) versus June 30, 3008 as a result of $164.5 million of retained income and a $45 million increase in unrealised gains from the fixed income investment portfolio generated during the first half of this year.

Chris O'Kane, chief executive officer of Aspen, said: "I am pleased to report another good quarter for Aspen. Our annualised operating return on equity in the quarter was 16.4 percent which is due to strong performance from both our underwriting operations and investments.

"We reported continued growth in book value per share of 4.3 percent in the quarter and eight percent year to date, which reflect our conservative investment philosophy and underwriting discipline in a challenging market environment. We are seeing attractive rate increases in some parts of our business, in particular cat-exposed lines, but continued rating pressure elsewhere.

"As a consequence our focus will remain on allocating our capital to those lines which offer attractive risk adjusted returns on a relative basis consistent with our diversified business model."

Gross premiums written rose by one percent to $534.3 million from $528.8 over the respective periods, but cash flows from operating activities were $99.1 million compared with $156.3 million in the second quarter of 2008, with the decrease driven by claims settlements related to Hurricane Ike.

The company also increased its unrealised gains in the fixed income portfolio by $41.7 million this quarter compared with unrealised losses of $110.4 million in the second quarter of 2008.

It also reported a combined ratio of 99.9 percent versus 79.2 percent for its international insurance segment, attributable to the $12.5 million of losses from the Air France disaster.

Net income: $110.4 million compared to $126.9 million in 2008

Combined ratio: 87.7 percent compared to 78.2 percent in 2008

Gross premiums written: $534.3 million compared to $528.8 million in 2008.