Montpelier Re's net income rose by $52 million during the first quarter of this year, despite the tough economic conditions.

The company's profits increased from $300,000 in the first quarter of 2008 to $52.3 million for the same period in 2008.

But gross premiums written fell slightly from $256.8 million to $250.6 million over the corresponding time.

Chris Harris, president and CEO of Montpelier Re, said: "We produced a solid first quarter result with a combined ratio of 74 percent. Notwithstanding a reduction in our risk profile, the combination of strong rate levels and our expanded operating platform contributed to growth in net written premium of seven percent."