Platinum Underwriters Holdings Ltd. managed to boost its profit margin during tough trading conditions over the second quarter of 2008.

The re/insurer saw its net income rise by $11.7 million or 12.9 percent from $90.7 million in this year's second quarter to $102.4 million for the same period in 2007.

Net premiums earned, however, fell 12.8 percent to $258 million from the same quarter last year, and net investment income dropped 14.2 percent to $46.9 million over the same period, but net favourable development was up $36.8 million, compared with net favourable development of $22.2 million year on year. Chief executive officer Michael Price said: "Our results reflect disciplined underwriting, favourable reserve development, lower than expected catastrophe activity, significant investment income, and active capital management.

"Our net income was very strong and resulted in record earnings per diluted common share. Our book value per share growth of 2.7 percent for the quarter and 8.7 percent year to date reflected an increase in unrealised losses in our investment portfolio.

"Reinsurers face challenging market conditions for both their underwriting and investment activities. Through this turbulent period, we will continue taking risk on both sides of the balance sheet provided we believe we are being adequately compensated for doing so."

Net premiums written for Platinum's property and marine, casualty and finite risk segments for the quarter ended June 30, 2008 were $118.6 million, $102.9 million and $3.4 million, respectively, representing 52.7 percent, 45.8 percent and 1.5 percent, respectively, of the total net premiums written.

Results for the six months ended June 30, 2008 included net income up from $163.5 million to $207.5 for the respective period last year.