profit fell 85 percent from the same period in 1995.

For the three months ended June 30, the company's net income was $2.8 million, or 11 cents per share, compared to $19.3 million, or 74 cents per share.

For the half-year, net income was $10.2 million, or 39 cents per share, down 30 percent from $16.7 million, or 64 cents per share, in the same period a year earlier.

New York-based property and casualty reinsurer ZRC is part-owned by Bermuda-based holding company Zurich Centre Investments Ltd.

After tax net operating income almost doubled to $7.3 million, or 28 cents per share, compared to $3.7 million, or 14 cents per share. Corresponding half year figures were $13.7 million (53 cents per share) and $7 million (27 cents per share).

Investment portfolio depreciation of 79 cents per share and realised capital losses of 14 cents per share were partially offset by the improved operating income.

Net investment income was $22.4 million, up nine percent from the $20.6 million reported earlier.

The company cited a 30 to 40 point increase in fixed income yields and a strong quarterly equity return of 4.5 percent from Standard and Poor's 500 in connection with the investment income increase.

The company also said that gross premiums written in second quarter rose 45 percent to $190.6 million from $131.1 million. For the six months, gross premiums written were $367.5 million compared to $247.9 million, up 48 percent.

The company said that there were no significant catastrophe losses in the last six quarters.

Second quarter combined ratio was 102.9 percent compared to 108.6 percent.