first quarter net income of $23.3 million (93 cents a share) to December 31, improved from $22.7 million (99 cents a share) a year ago.

Bermuda-based GCR Holdings Ltd. provides property catastrophe, property risk excess-of-loss, property pro rata, marine, energy and satellite reinsurance to insurers on a worldwide basis through its principal wholly-owned subsidiary, Global Capital Reinsurance Ltd.

Net operating income for the quarter, excluding net realised gains and losses on investments, was $23.2 million, compared to $22 million in the prior period.

The company recorded $4.1 million in first quarter premiums, down from $7.6 million for the comparative period.

GCR Holdings Ltd. president and CEO, Lawrence S. Doyle, said, "We are pleased with our earnings performance for the first quarter of our 1997 fiscal year.

"Our loss experience continues to be very favourable by industry standards.

There were no significant catastrophic events during the quarter.

"As expected, written premiums were not significant to the quarter. The reduction from the first quarter of the prior year reflected a change in the renewal date of one large contract to January 1, and our desire to reduce shares on a few existing programmes.

"The company's most important renewal season falls in its second fiscal quarter when contracts with January 1 inception dates are written.

"As anticipated, ongoing favourable loss experience in our core property catastrophe business has resulted in increased price competition.

"We have seen rate reductions of 15 percent on average. We continue to enforce our disciplined underwriting strategy, which emphasises quality rather than premium volume. This approach has resulted in our rejection of certain programmes which we feel were inadequately priced.

"Our strong operating results have allowed GCR to maintain a 62-cent quarterly dividend, which is consistent with our goal of paying 60 to 80 percent of operating earnings for the prior fiscal year, subject to loss experience and other factors.'' Mr. Doyle expressed pleasure at the A claims paying rating from Standard & Poor's in recognition of the company's strong financial condition, experienced management and conservative underwriting philosophy.

Investment income for the quarter was down to $6.6 million (1996: $8.3 million) reflecting modestly declining yields and the sale of investments to provide for repayment of debt in late February 1996.

Total revenues were down 11.2 percent to $37.3 million, because of decreased premium earnings, together with decreases in investment income and realised investment gains.

During the three month period, loss and loss experience totaled $6.2 million, a 39 percent improvement over the same period a year before.

GCR was affected by one catastrophic event in the first quarter of the 1996 fiscal year, Hurricane Opal, which struck the Florida Panhandle in October 1995.

The loss ratio for the quarter was 20.5 percent, compared to 31 percent for the first quarter of fiscal 1996. The combined ratio dipped from 49.1 percent during the comparative period to 43.4 percent.

Two new operations were established during the period. Global Capital Underwriters Ltd., a joint venture between GCR subsidiary, Global Capital Reinsurance Ltd. and Capital Re Corporation has been formed with $20 million in combined capital.

The company also established Global Capital Underwriting Ltd., a wholly-owned subsidiary, to participate in a corporate parallel syndicate to underwrite a marine insurance portfolio at Lloyd's of London. Both of these investments are modest in scope and are not expected to have a meaningful impact on results of the current fiscal year.

Total assets stood at $505.9 million, compared to $516.8 million at September 30, 1996. Shareholders' equity increased from $417 million at December 31, 1996 to $427.3 million a year later. Book value per share increased from $16.90 to $17.25 per share.