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Net income rose to $173.9 million for the second quarter, up from $47.5 million for the 2008 second quarter. Operating income fell slightly to $96.5 million from $98.3 million.
Net premiums earned jumped 13% to $96.2 million from $84.9 million. Net investment income fell slightly to $21.3 million from $23.4 million. However, the company recognized a net gain of $77.4 million from investments in the second quarter, up from a net loss of $50.9 million for the same period a year ago.
In a conference call July 24, Interim President and Chief Executive Officer John Weale said the company had "achieved great results... thanks to new business and improvements in pricing, which more than offset the business that was not renewed."
He said the company saw little in terms of cat activity, other than the crash of the Air France Airbus, which caused $9.1 million in losses for IPC, and the April earthquake in Italy, which caused a $2 million loss for the company.
The company also spent $22.6 million so far this year on its merger activities, including the cost of legal and financial advisory services, and costs associated with the "acceleration of compensation awards in connection with the retirement of our CEO."
In March, IPC (NASDAQ: IPCR | Quote | Chart | News | PowerRating) announced long-standing CEO Jim Bryce would retire in June as the company merged with Bermuda-based Max Capital Group (NASDAQ: MXG). That transaction was voted down by IPC's shareholders, and IPC ended up accepting an unsolicited merger offer from Validus Holdings (NYSE: VR). The Validus transaction is valued at $1.7 billion (BestWire July 9, 2009).
IPC Re Group's Best's Financial Strength Rating of A- (Excellent) is currently under review. IPC's stock was trading at $28.96 on the afternoon of July 24, up 0.03% from the previous close.
(By Meg Green, senior associate editor, BestWeek: Meg.Green@ambest.com)
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