Allied World's loss ratio improved 1.5 points to 78.2.

Scott Carmilani, president and chief executive officer of Allied World, said during a conference call that throughout the various property-casualty segments, “we see slightly different trends, but overall, a common theme.” That theme, he said, is brokers looking for rate cuts and sometimes increased exposure for the company.

Mr. Carmilani said the property market is “probably where we're seeing the most egregious behavior in the market….” He said rates were down 15-to-20 percent on average for business that Allied World has kept, and down more than 25 percent on business it has not kept.

Allied World's net investment income was reported at $76.9 million for the quarter, up from $72.6 million in 2007, primarily the result of an increase in the dividend received from its global high-yield bond fund. The company posted net realized investment gains of $3.5 million compared to a loss of $6.5 million in the first quarter of 2007.

Speaking to the company's results for the quarter, Mr. Carmilani said in a statement, “Allied World continues to post very strong results despite the competitive market conditions that currently exist.” He added, “Gross production was down 9.5 percent for the quarter due to a lower premium rate environment and some nonrenewal of business where rates were simply inadequate.”

During the conference call, he added, “We're clearly operating in the down slope of a soft market cycle. We see that as an opportunity to differentiate ourselves with underwriting expertise and the management of our business.”