loss of $14.5 million -- despite a massive increase in premiums written -- compared with net income for the 1993 period of $5.8 million.

The company -- which is a subsidiary of Bermuda holding company Zurich Centre investments Ltd. -- suffered an after tax net operating loss of $7.6 million, or 29 cents per share compared to a loss of $1.6 million, or ten cents a share for the first quarter of 1993.

ZRC's stock closed down 50 cents to $24.625 on the new York Stock Echanges yesterday.

Realised capital losses, net of tax, were $7 million or 27 cents per share, compared with capital gains of $7.4 million or 44 cents per share, for the first quarter last year.

Premium volume was dramatically up on last year's first quarter and the operating expense ratio dropped substantially, but the company still incurred a net loss of $14.5 million (56 cents per share) for the quarter, compared.

The two primary causes of the losses were catastrophe losses totaling $7.9 million ($0.30 per share) net of tax, and realised investment losses as noted above. Catastrophe losses in total contributed approximately 27 points to the company's first quarter loss ratio, 19 points of which were due to the Northridge earthquake.

Net premiums written for the first quarter of 1994 increased 201 percent over the same period last year to reach $57.6 million. Net earned premiums increased 238 percent to $45 million. Premium growth reflected an increase in new writings, especially in casualty treaty and casualty facultative lines, and increased participations on renewing contracts and certificates for treaty and facultative business.

ZRC chairman, president and CEO, Mr. Steven M. Gluckstern said: "Although the financial results of the quarter are disappointing, our January renewal season was excellent in terms of the quality and the type of business we wrote.

"The increase in our premium volume was significant and, considering current market conditions, is in line with the company's expectations for the year.

ZRC served as the lead market on nearly 70 percent of the business we wrote in the first quarter and placed limits on our aggregate liability on 63 percent of our premium volume.'' Mr. Richard E. Smith, executive vice president and chief operating officer, commented on the catastrophe losses. He explained: "The Northridge earthquake in January is estimated to be the second largest US insured catastrophe loss in history.

"Our preliminary loss estimate of $5 million in February was based on an industry estimate of $3 billion total insured loss and not on reported claims.

"At this time, we still have very few actual claims of loss, however, we have revised our estimate of ZRC's total loss based on discussions with our brokers and clients as well as recently published industry estimates that have been as high as $7 billion of total insured loss.'' The growth in net investment income to $10.3 million for the first quarter for the year, compared with $4.1 million for the same period last year is attributed to the income generated on a larger investment base.During May and October last year, ZRC issued equity and debt, respectively. At January 1,1994, ZRC adopted Statement of Financial and Accounting Standard No. 115, "Accounting for Certain Investments in Debt and Equity Securities.'' The company classifies virtually all of its investment portfolio as "available for sale'' and, as such, records these securities on its balance sheet at their market values, with the related unrealised change in market value being recorded directly as an adjustment to the stockholders' equity.

For the first quarter of this year, ZRC recorded a decrease in stockholders' equity due to an unrealised depreciation of investments of $23.9 million net of approximately $4.2 million of tax benefit.

Senior vice president and chief financial officer, Mr. Peter R. Porrino in commenting on the company's investment performance said, "We manage our portfolio on a total return basis, and therefore there are times when maximising the portfolio's yield will mean accepting current realised losses in order to achieve a higher overall return.

"Managing on a total return basis in a changing rate environment blurs the distinction between realised and unrealised capital losses. We will continue to seek to maximise the economic value of our investment portfolio irrespective of interim underwriting results.'' Other operating costs and expenses increased for the review period from $1.1 million to $7.2 million, but the company's statutory other expense ratio decreased to 10.8 percent from 21.8 percent in the fourth quarter of 1993.

That decline in is attributed to growth in the company's written premium base.

Headquartered in New York City, Zurich Reinsurance Centre Holdings Inc., through its operating subsidiary, is the principle underwriting affiliate of the Zurich Insurance Company and Bermuda-based Centre Reinsurance Companies in the North American market for broker traditional property and casualty reinsurance.

ZRC is 58 percent owned by Zurich Centre Investments Ltd., a Bermuda-based holding company; eight percent owned by White River Corporation and 34 percent publicly held.

Mr. Steven Gluckstern.