investment portfolio, yet its chief executive said the company's performance has been favourable.

Overseas Partners Ltd. (OPL), declared a $258.3-million profit for the six months to June 30, after a disappointing second quarter in which earnings slumped more than 70 percent from $205.5 million down to $61.4 million.

The company declared a cash dividend of $1.04 per share payable August 28 to shareholders of record August 12, after company assets grew $300 million to more than $4 billion during the six month period.

One of the world's largest reinsurers, OPL has an investment portfolio valued this June at $2.3 billion.

The company opened for business in 1993 with shipper's risk, the reinsuring of packages shipped through United Parcel Services (UPS).

They later expanded into related risks, such as property, worker's compensation, aviation, marine, medical benefits, finite risk and other specialty reinsurance products.

Company president and CEO Bruce Barone described the performance in each of the firm's business activities as "very favourable'', although he conceded the investment performance paled in comparison to the corresponding period in 1997.

He said: "The US equity market performance year to date has been excellent -- 17 percent growth versus 20 percent for 1997 -- and bonds improved from 3.1 percent growth to 4.4 percent in 1998.

"Our emerging markets equity portfolio, however, declined by 13 percent primarily due to the economic problems in Asia.

"This was the primary cause for the reduction in investment income and net income for the six month period to June 30, 1998 when compared to the same period in 1997.'' There was a marginal improvement in net underwriting by 3.4 percent over the six month period to $120.3 million, after second quarter net underwriting rose 5.3 percent to $61.9 million.

Those improvements came despite a $30-million decrease in six month gross premiums written to $429.3 million.

Mr. Barone said: "We restructured, and in certain cases terminated, programmes where the revised terms were not favourable, or where expected economics did not satisfy our return criteria.

"We have added 37 new programmes since June 30, 1997, where there was the potential for long term business relationships at mutually acceptable terms.

Overseas Partners "New programmes accounted for 26.7 percent of premiums written and 22.1 percent of premiums earned to date,'' Mr. Barone said.

Operating income from the real estate and leasing activities increased $4,000,000 to $11 million for the half year period.

The company has recorded higher occupancy rates, while they have kept a lid on costs.

Mr. Barone noted: "We are also pleased to report that on July 8, 1998 we completed the acquisition of 200 West Madison Plaza, a 45-storey Class A office building located in Chicago's central business district.'' OPL owns and manages five major pieces of US real estate through subsidiary Overseas Partners Capital Corp., including a convention hotel and several office blocks. Other owned properties are leased to major corporations.

OPL declared 1997 revenues of $1.1 billion, total assets of $3.7 billion and net income of $477.1 million.

With more than 85,000 shareholders, OPL's common stock is listed on no stock exchange and is not sold in the organised over-the-counter market. Shares are mainly held by UPS workers.