Bermuda-based RenaissanceRe Holdings Ltd. reported net operating income, excluding realised investment gains and losses, of $30.7 million for the second quarter ended June 30, a decline of 18 percent over the same period last year.

Net income for the second quarter was $28.5 million, or $1.26 a share, a fall of 23 percent. For the half year net operating income was $65.1 million, or $2.87 a share, a decline of about ten percent. Net income for the six months was $64.2 million or $2.83 a share, a decline of 11.3 percent.

While gross premiums written increased, net premiums written and earned declined.

Company chairman president and chief executive officer James Stanard attributed the declines to increased purchases by the company of retrocessional protection for its reinsurance business.

"Our gross written premium for six months has increased versus 1997 as the growth in primary insurance operations has more than offset the decline in the retrocessional premiums assumed,'' he stated in a press release. "The declines in net premium written and operating earnings per share were primarily due to increased purchases of retrocessional protection for our reinsurance business, on which we plan to spend approximately $20 million more than we did in 1997. Although this expenditure reduces earnings per share in years with no large losses, it will help to reduce earnings volatility in the long run.'' RenaissanceRe wrote gross premiums of $45.9 million in the second quarter, a gain of 32 percent. Net premiums written declined 74 percent to $5.2 million.

Net premiums earned fell to $47 million compared to $51.5 million in second quarter 1997. For the half year the company wrote gross premiums of $165 million, an increase of 6.3 percent over the same period 1997. Net premiums written were $117.6 million, a decline of 15 percent.

Claims and claim adjustment expenses incurred were $10.3 million, or 22 percent of net premiums earned, compared with $11.1 million representing 21.6 percent of net premiums written for second quarter 1997.