net income for the year 2000. This represents $4.02 per diluted share compared with $3.25 in 1999. Operating income for the year was $185.9 million, compared to $169.0 million in 1999.

Joseph Taranto, chairman and chief executive officer, said: "We continue to capitalise on the improvements taking place in our markets. Accordingly we expect gross premiums for the year to increase by more than 20 percent over 2000, and we are raising our earnings estimates for 2001 to a range of $4.50 -- $4.90 per diluted share in the absence of unusual loss activity.'' In figures released by the company for the last quarter of 2000, operating income had risen to $50.6 million, compared to $39.3 million for the same quarter the previous year. This meant a 28.6 percent increase in earnings per share. Net income for the quarter was up $11.9 million to $51.4 million compared with the fourth quarter of 1999.

There was also a huge increase of 30.9 percent in gross premiums written for the quarter. This quarter shows $399.6 million compared to $305.2 million in the same quarter of 1999. Net investment had also increased to $83.1 million, 29.7 percent more than in 1999.

Gross premiums written for the year increased 21.4 percent to $1,385.6 million from $1,141.8 million in 1999. Net investment income for the year was $301.5 million, a 19.2 percent increase on 1999.