popular, writes Business writer David Fox Bermuda-based reinsurer, Centre Reinsurance (Bermuda) Ltd. increased premium writings over the prior year by more than $130 million for the 12 months to December 31, pushing total revenues past a record billion dollars. Centre Re's annual report declares net income of $133,621,000 for the year, a near 33.5 percent drop year-over-year from the $200,845,000 in net income for the 1995 year, although the underlying business continues to grow. End of year declared net assets rose 17 percent, up nearly $650 million, to more than $4.5 billion. Shareholders' equity grew seven percent to $1.2 billion. The company's reserve for losses and loss adjustment expenses, net of reinsurance recoverables, was increased by $335 million last year, and $646 million the year before. Premium writings rose to $769.2 million (1995: $637.5 million) and net investment income rose from nearly $176.8 million to more than $218.3 million. Combined with realised investment gains of more than $40 million and other income, total revenues climbed 20 percent (up nearly $172 million) to $1,031,239,000. Each Centre Re contract is unique, and the rate at which they release income into the GAAP results is a function of several factors, including contract duration, nature of the risk exposure and mix of business. Owned ultimately by Swiss insurer, Zurich Insurance Co., the company maintains that premium volume is not the best measure of an insurer's performance, especially Centre Re. But company executives noted that the underwriting year premium volume, representing the total amount of premium committed to all of the contracts bound in one year, reached $1.3 billion, an increase of over five percent since 1995 and 12 percent since 1994. An analysis of operations in the company's annual report points to the improvement as an indication of the popularity of the firm's business approach. It adds: "As a result there is a significant volume of premium to which we are contractually entitled, but which has not yet been reported in our financial statements under GAAP accounting. "Despite market pressures, this premium should provide a steady stream of GAAP income in years to come, further enhancing our financial strength and solidifying our net income. "At the end of 1996 our estimate of future premium yet to be earned on bound contracts was greater than the $4 billion of premium we have earned cumulatively on a GAAP basis.'' The nine year old company is continuing geographic diversification, and last year saw significant growth in non-US business, including the completion of the first contract in South Africa.

Non-US sourced business, in fact, grew to 40 percent of total business volume.

The company also said that it will continue to participate in the formation of new joint ventures, to address the unfulfilled needs of specific market segments. Centre Reinsurance (Bermuda) Ltd. is rated "A'' Excellent by A.M.

Best Co. and has a claims paying rating of "AA'' or Excellent from Standard & Poor's Corp.