catastrophe reinsurance company IPC Holdings Ltd.'s operating income by 25 percent in its first quarter.

Net income for the three months ending March 31, which included net realised gains and losses from the sale of investments, was $9.8 million, or $0.39 per share, down $5.4 million or 30 percent compared to the ssame period in 1999 when net income was $15.2 million, or $0.58 per share.

Operating income for the quarter, excluding realised gains and losses from the sale of investments, was $10 million or $0.40 per share, for the quarter ended March 31, 2000, compared to $8.7 million, or $0.33 per share, for first quarter '99.

President and chief executive officer John Dowling said: "We are pleased to report that pricing has started to improve, and we remain cautiously optimistic that it will continue to improve throughout 2000. Although there were no significant catastrophes during the first quarter of this year, our results reflect the fact that the initial industry estimates of the European storms which took place in late December last year, proved to be optimistic, especially for extra-tropical cyclone Martin, where industry estimates have subsequently increased by over 250 percent. However, we believe as the size of the loss for that event is absorbed by the market, this should have a further positive effect on both demand and pricing.'' IPC's decline in net income was attributed to a realised loss on investments of $143,000 compared to a realised gain on investments of $6.5 million in the first quarter of 1999.

Gross written premiums in the quarter were $57.8 million, compared to $65.3 million written in the first quarter of 1999.

IPC income up on stronger pricing Written premiums were down primarily because approximately $7.1 million of premium was written effective January 1, 1999 for policy periods of fifteen to eighteen months, as the company's clients sought to renew for periods extending past January 1, 2000.

Premiums ceded to IPCRe's pro rata retrocessional facility in the quarter ended March 31, 2000 were $1.4 million, compared to $2.8 million in the quarter ended March 31, 1999. This reduction is also due, in part, to those contracts which were written last year for policy periods extending beyond January 1, 2000.

Net premiums earned in the quarter ended March 31, 2000 were $22.7 million, compared to $23.8 million earned in the corresponding period in 1999. The reduction was due primarily to the premium volume written in the latter half of 1998 (earned in the first half of 1999) being greater than the premium volume in the comparative period in 1999.

Net investment income was $7.6 million in the quarter ended March 31, 2000, compared to $7.4 million in the corresponding quarter of 1999.