The Atlantic Mutual Companies group has reported $6.6 million net income for the three months ended June 30, compared to $8.2 million for the same period in 1997.

The New York firm opened Atlantic Mutual Of Bermuda, Ltd. in 1997, as a licensed property and casualty insurer that acts as a rent-a-captive to accommodate individual entities or groups interested in a risk management programme that can provide short-term or long-term benefits of risk sharing and investment options. On a year-to-date basis, net income amounted to $10.7 million, compared to net income of $11.7 million for the first six months of 1997.

There were heavier-than-normal weather-related catastrophe losses for the quarter. A series of storm systems caused an unusually large amount of wind, hail and water damage, primarily in the Midwest.

The catastrophe losses for the first six months of 1998 totalled $8.9 million on a pre-tax basis, compared to just $1.5 million for the same period in 1997.

Kermit C. Smith, President and Chief Operating Officer stated, "The second quarter proved to be a very challenging time for the property/casualty industry with estimated industry-wide catastrophe losses exceeding more than $3.4 billion during the quarter, the highest second quarter ever.

"Our ongoing actions to reduce the impact from catastrophic events on Atlantic's net income proved successful as our loss, when related to premiums, was significantly less than those incurred by many of our competitors.'' Gross premiums written grew by 5.0% for the half year, and 13.1% during the second quarter alone. Growth was driven by 1997 business initiatives, including Atlantic Agency Reinsurance Companies.

The Atlantic Mutual Companies offer a range of commercial, personal and marine property/casualty insurance products through independent insurance agents and brokers.

The group's operations are conducted through the Atlantic Mutual Insurance Company, the lead company, the Centennial Insurance Company, the Atlantic Specialty Insurance Company, the Atlantic Lloyd's Insurance Company of Texas, Atlantic Mutual of Bermuda, Limited and Atlantic Risk Services, Inc.

The Atlantic Mutual Insurance Company, formed in 1842, is a mutual insurance company owned by its policyholders and has no capital stock and no shareholders.

With 1997 net premiums written of $579.5 million, the Atlantic Mutual Companies ranks among the top 75 US property/casualty insurance groups.