the year ended December 31, an increase of 23 percent over the previous year.

Net income per ordinary share was $1.63 compared to $1.55 in the previous financial year.

In the fourth quarter net income grew 14 percent to $3.9 million, compared to $3.4 million in the same period 1997.

Chairman, president and chief executive officer Mark Cooke said the operating results reflected the continued growth of the company's business.

"I consider the results satisfactory considering the extremely competitive nature of the workers' compensation market during 1998,'' he said. "We have seen these competitive conditions continuing into 1999.

During the year risk management fees increased by $9.9 million or 22 percent to $55.6 million. Brokerage income grew by $3 million to $27 million for the year. General agency fees increased by $3.4 million to $14.7 million. "This growth reflected the continued expansion of the company's managing general agency network primarily in the Southeastern United States,'' the company said. Company subsidiary Realm National Insurance Co. Ltd. increased by $1.3 million to $2.1 million in 1998. Net premiums earned increased $6 million to $17.8 million in 1998. Net investment income increased by $3 million to $8.8 million.

Total revenues increased 30 percent to $85.1 million for the year. Meanwhile, total expenses increased 32 percent to $65.3 million. Of the increase $8.6 million was related to increased insurance costs.

The increased insurance costs was due to a increase in net premiums earned and a provision of $2.5 million in the fourth quarter for reinsurance recoveries.