Insurer and reinsurer Terra Nova (Bermuda) Holdings Ltd. grew so much during 1997 that the company increased its book value per share by 23 percent to $18.96, according to the company's annual report.

Like many companies in the business Terra Nova has pursued a strategy of diversification and expansion to try and ride out the current competitive cycle leading to low premium rates.

The company is the holding entity of UK-based Terra Nova Insurance Co., Terra Nova (Bermuda) Insurance Co. Ltd., Paris-based Corifrance, and London-based Terra Nova Capital Ltd. and Octavian Syndicate Management Ltd.

Terra Nova (Bermuda) Insurance Chairman and Chief Executive Officer John Dwyer said the company's strategy of expanding its client base is part of a long term survival plan to stay in business.

Mr. Dwyer has been designated as the next chairman of the group of companies, replacing the position held by William Bailey when he retires next month.

"This is not our first experience with the back side of a pricing cycle nor will it be the last,'' he stated in the report. "Great companies outperform their competitiors at every point during the course of the inevitable insurance/reinsurance cycle and we are determined to be among them.'' He said the Bermuda operating company expanded its portfolio of Bermuda originated business to $39.3 million of gross written premium, an increase of about 11 percent.

"Our strategy continues to be a simple one of expanding our client base, seeking to participate in the best primary company programmes and reducing or eliminating our participation when pricing pressure becomes too severe,'' he stated. "When market conditions improve, we'll have a sound relationship with the account and the broker and the financial strength to capitalise on the time and effort we're investing today.'' During the year the company created an underwriting agency in Bermuda to provide certificates of financial responsiblity (COFR's) required for ships entering US waters.

As previously reported in The Royal Gazette the group of companies made an overall net income of $73.4 million, an increase of 13 percent. Operating earnings increased ten percent to $62.9 million.

In 1997 the company increased its spread of business by entering new lines, by acquiring Corifrance, and by forming two additional Lloyd's syndicates within Octavian.

The company also noted that since its start in the London market in 1969 it has paid $27.2 million in asbestos-related and environmental pollution claims.

The company has set aside $89.1 million of its loss reserves to pay for further anticipated claims.