The loss of one of its largest and most profitable programmes, together with an increase in the frequency of catastrophic events last year, has resulted in a disappointing 1999 for Bermuda reinsurer Overseas Partners Limited.

The company announced its audited consolidated financial results for 1999 on Friday, which showed its net income, including realised and unrealised investment gains and losses, for the year was $232.8 million or $1.85 per share.

This was down on 1998 when Overseas Partners reported a net income, including realised and unrealised investment gains and losses, of $488.3 million or $3.87 per share.

As of December 31, 1999, the company's total assets were $4.9 billion and members' equity was $2.5 billion.

Overseas Partners' Chief Executive Officer Scott Davis said: "Last year proved to be a challenging and eventful year for OPL.

"We started this year knowing that we faced the challenges of an extremely difficult and competitive reinsurance industry.

"In the third quarter we received notice of the cancellation of the shipper's risk programme, which has historically been our largest and most profitable programme.

"Also, 1999 was one of the insurance and reinsurance industry's worst performing years, not only because of ther downward pressure on premium rates, but also because of the increase in the frequency and associated cost of catastrophic events.

"Our current year underwriting loss of $66.2 million reflects all of these factors.'' On OPL's investment portfolio, Mr. Davis noted: "Our investment portfolio includes a balance of equity and fixed income securities.

"This proved to be beneficial as the US economy continued to grow and the global economy bounced back from the emerging markets crisis in 1998.

"These factors contributed to a portfolio return of 13.2 percent and total investment income of $308.8 million.'' On OPL's results for the year, Mr. Davis said: "Although disappointed by our results, we remain upbeat on our future prospects.

"We are starting to see indications of premium rate increases across several lines of business.

"We believe that, with our financial strength and the recent additions to our senior management team, Mary Hennessy as President and Chief Operating Officer and Michael Cascio as Chief Underwriting Officer, we are well placed to take advantage of current opportunities.'' In other news, the company also announced the declaration of a cash dividend on February 9 of 60 cents per share, payable on March 10 to shareholders of record on February 10.

The Board of Directors also determined the company would commence paying dividends to shareowners on a semi-annual basis.