Insurer Allied World Assurance Co. Holdings Ltd., with operations in Farmington, said second-quarter net income jumped 62 percent as a result of strong investment returns and deft property-casualty underwriting.
Allied World, based in Pembroke, Bermuda, earned a net $184 million, or $3.47 a share, in the three months ended June 30, up from $113.7 million, or $2.22 a share, earned the same period a year earlier.
Operating income actually declined in the period, to $95.7 million, or $1.80 a share, from last year’s $112.8 million, or $2.20 a share, due to weather-related losses and the impact of an unspecified mine collapse, the insurer said.
“Our profitable results continue to be driven by our strong investment portfolio and our historically prudent and responsible underwriting philosophy,” President and Chief Executive Officer Scott Carmilani said in a statement.
During the quarter, Allied World announced a $500 million stock buyback, of which 1,081,041 common shares were repurchased on the open market for $49.1 million, or an average $45.41 a share.
The purchase boosted its diluted book value on June 30 to  $65.18 a share from $59.56 on Dec. 31, 2009.
The insurer also declared a quarterly common dividend of 20 cents a share to be paid Sept. 9 to stockholders of record on Aug. 24.
