Third quarter net income for Bermuda reinsurer RenaissanceRe Holdings Ltd.

dropped more than 42 percent to $20.4 million (91 cents per share) compared to $35.4 million ($1.56 per share) for the same period in 1997.

It brought earnings for the first nine months to September 30 to $84.6 million, a near 22 percent decline from $107.9 million during the same period in 1997.

Chairman, president and CEO James N. Stanard stated, "Hurricane Georges was the most severe property catastrophe to the reinsurance industry since the Northridge Earthquake in 1994 (as reported by Property Claims Services).

"Considering this, our reinsurance operations performed very well, with a net loss ratio in the normal quarterly range. Our primary business included a loss of $4.9 million, or 22 cents per share, from our recently acquired Nobel Insurance Company, principally as a result of adverse development on prior accident years' loss reserves.'' Claims and claim adjustment expenses incurred for the quarter were $26.7 million (1997: $14.7 million) or 45.5 percent (1997: 27.7 percent) of net premiums earned.

Claims and claim adjustment expenses incurred for the first nine months were $44.9 million (1997: $40 million) or 29.6 percent (1997: 25 percent) of net premiums earned.

Combined ratio for the quarter was 74.7 percent, up from 51.8 percent in 1997.

For the nine month period, combined ratio was 58 percent, up from 48.1 percent.

Gross premiums written for the third quarter of 1998 were $78.1 million, up from $60.4 million for last year's third quarter. Net premiums were up from $46.7 million to $66.4 million. Net premiums earned were $58.7 million compared to $53 million for the same period last year.

Gross premiums written for the nine months rose 12.8 percent to $243.1 million from $215.6 million. Net premiums written were $184.0 million (1997: $185.0 million).

Net investment income, exclusive of realised and unrealised investment gains and losses, for the third quarter of 1998 was $13.3 million, compared to $12.7 million for the same period in 1997.

Net investment income for the first nine months of 1998 was $39.6 million, compared to $37.0 million for the same period in 1997.

During the quarter the company repurchased 225,670 shares at a total cost of $9.7 million, bringing the total for the year up to $25.4 million and leaving the authority to repurchase an additional $24.6 million of it's shares.

Shareholders' equity at September 30, 1998 was $648.9 million, compared to $598.7 million at December 31, 1997. Book value per common share was $29.42 per share, compared to $26.68 per share nine months before.

It was the first quarter in which the financial results of Nobel Insurance Company were included in the income statement of RenaissanceRe Holdings Ltd.