LaSalle Re Holdings Ltd. has reported first quarter net income to December 31 of $28,047,000, down slightly from $29,400,000 in the first quarter the year before. Earnings per share were $1.16, compared to $1.23 for the comparative period.

Net premiums written were down from $12.6 million to $5.2 million, an expected development due to several factors.

They include 1996 premium adjustments on quota share contracts of $3 million dollars that were not repeated for the quarter under review. Lower loss activity also led to a reduction in reinstatement premiums of $900,000.

Net premiums earned were $43.1 million, compared with $49.4 million a year earlier. Net investment income increased from $6.2 million to $8.1 million, due to a larger investment base and better yields.

Losses and loss expenses for the quarter were $10.8 million or 25.1 percent of earned premiums, compared with $15.9 million or 32.1 percent of net premiums earned during the comparative quarter of 1996.

Chairman, president and CEO, Victor H. Blake, said the results are a reflection of what is a normally quiet underwriting quarter.

He said, "This quarter is not a significant one in terms of premiums written.

Most of our business renews at other times in the year.'' He said the company is continuing to generate strong profits, and is meeting its long term goal of achieving a high annualised return on equity, targeted at between 20 percent and 25 percent.

He added, "Competition continued in our sector.

LaSalle Re reports ` quiet' quarter " In face of this, we are operating profitably by continuing to focus on retaining our core clients, maintaining the broad geographic spread of our risks and diversifying the lines of business we write.'' During the quarter the company completed a secondary offering of shares in which certain of its founding shareholders reduced their holdings in the company.

Upon completion of the secondary offering, the minority interest in LaSalle Re Ltd. was reduced from 37 percent to 27 percent. Founding industry sponsors Aon and CNA maintained their initial positions in the company.

Through subsidiary LaSalle Re Corporate Capital Ltd., the company became a corporate member of Lloyd's of London on January 1, participating in three Lloyd's syndicates.

Individually, these syndicates write a variety of risks, including marine insurance and reinsurance, professional indemnity and directors and officer's insurance, and direct and facultative business.

In conjunction with the previously announced enhanced capital management strategy, under which the company intends to pay out 50 percent to 60 percent of prior year's earnings by way of dividends, the company paid a quarterly dividend of 71 cents per share January 16 to shareholders of record January 2, representing 50 percent of fiscal 1996 earnings.

The company has implemented a reinsurance programme this quarter.

Mr. Blake said, "This programme was specifically designed to reduce the volatility of earnings and underpin our capital management strategy, which, in turn supports our dividend policy.

"We are pleased to announce that we have come to a successful conclusion with its implementation.''