IPC Holdings Ltd. saw its profits reduced to less than one-tenth for the first quarter of 2009 compared to the respective period last year - but president and CEO Jim Bryce had reason to be positive with a solid start already to the year.

The insurer's net income slide from $86.8 million or $1.31 per share in the first quarter of 2008 to $8.3 million or 15 cents per share this year.

The company wrote $234.6 million in gross premiums written versus $187.9 million the previous year, while its combined ratio was up at 74.2 percent from 23.5 percent over the same period.

Mr. Bryce said: "The earnings decline this quarter was primarily the result of three factors: higher net losses and loss adjustment expenses; higher net loss on investments; and increased general administrative expenses, largely associated with the Company's review of strategic alternatives designed to enhance shareholder value, which resulted in the proposed amalgamation with Max Capital Group Ltd.

"However, we were pleased that the year started in robust fashion, as far as pricing, capacity shortfalls, terms and conditions are concerned. The loss events of the second half of 2008, including the financial 'hurricanes', had a beneficial impact on renewals.

"Current indications are that this momentum is continuing for second and third quarter reinsurance renewals. Loss activity in the first few months of this year, which included events in Europe and Australia, is similar to the same period in 2008, in that it also included events in Europe and Australia. In addition, the latest forecasts for the north Atlantic windstorm season are reminiscent of actual activity in 2008, with Professor Gray's team at the University of Colorado predicting 12 named storms, including six hurricanes, of which two will be intense. Capacity/capital is still a precious resource, cherished by clients, brokers and reinsurers and we continue to be in a favorable capital position."