IPC Holdings Ltd. boosted its profits by more than $125 million for the second quarter of 2009 - achieving one of the best results in the company's history - due to better pricing, an absence of big catastrophes and a turnaround in the equity and debt markets.

The company, which earlier this month agreed a merger deal with Validus Holdings Ltd. expected to go through in the next five to seven weeks, saw its net income for the second quarter rise to $173.9 million, or $3.11 per share, from $47.5 million, or 78 cents, per share over the same period last year, despite having to pay out more than $9 million following the Air France Airbus crash last month.

For the quarter ended June 30, 2009, its net operating income was $96.5 million or $1.72 per common share, compared to $98.3 million or $1.62 per common share for the second quarter of 2008.

Interim president and CEO, John Weale, said: "The second quarter of 2009 has proven to be another exceptional quarter for IPC, as we benefited from the convergence of continuing improvements in pricing, an absence of significant catastrophe events (with the exception of the tragic loss of the Air France Airbus), and a substantial turnaround in the equity and debt markets.

"As a result, we have achieved one of the best quarterly results in the company's 16-year history. Given the challenges we have faced over the past few months in connection with the terminated amalgamation agreement with Max Capital Group Ltd., as well as the recently announced proposed amalgamation with Validus, our results are a testament to the loyalty and support of our clients and their brokers, and as importantly, our staff, who have been simply magnificent during difficult and uncertain times.

"Given our strong performance in the quarter, we are frankly surprised by a recent statement by AM Best suggesting a deterioration in our business. We believe the continued strength of our business is clearly evidenced by our results, combined with the number of new client accounts and absence of staff departures since March 2009.

"Our results, our solid business profile and our strong market relationships are also a tribute to Jim Bryce, who was the main force in the setting up of IPC 16 years ago, and who led the company as CEO for the past nine years."

IPC wrote gross premiums of $127.5 million during the second quarter, compared to $105.2 million for the corresponding time in 2008, writing premiums for new business totalling $7.1 million.

The company also recognised a net gain of $77.4 million from investments in the quarter ended June 30, 2009, compared to a net loss of $50.9 million in the second quarter of last year, mainly down to the second-quarter recovery in investment markets.

IPC incurred net losses and loss adjustment expenses of $8.4 million, versus $6.4 million in the second quarter of 2008, including $9.1 million from the Air France Airbus crash in June and $2 million from an earthquake in Italy in April, offset by reductions to its estimates of ultimate losses for several prior period events, totalling approximately $19.5 million.