net income for the year to December 31 of $100.1 million ($3.79 per share), an 8.4 percent increase over the $92.6 million ($3.55) for 1996.

The return on average of beginning and ending shareholders' equity was 19.6 percent.

President and CEO John Dowling said, "Naturally, we are delighted to have achieved growth in both revenues and earnings in 1997, during a period characterised by continuing and increasing competitive pressures.

"These results stem from the commitment we have demonstrated to our long-term client base, while at the same time maintaining our highly disciplined approach to underwriting.

"In addition, we have, of course, benefited from a remarkably low level of losses in the US and throughout the world, during 1997. As I have said previously, this low level of loss is unlikely to be repeated in the near future.'' Mr. Dowling also noted: "The January 1 renewals were highly competitive, but again we believe we have benefited from the strong relationships that we have cultivated with our core clients.'' Through subsidiary International Property Catastrophe Reinsurance Co., Ltd.

(IPC Re), total premiums written for the year were $117.1 million, an increase of 4.9 percent, compared to $111.6 million written the year before.

Premiums earned for the 12 months were $112.5 million, compared to $113.6 million in the prior year.

Net investment income was a million dollars higher than the previous year at $29.9 million.

Losses amounted to $14.7 million, or 13.1 percent of earned premiums, some $6.7 million of which was incurred in the fourth quarter. In 1996, the losses were more than twice as much at $32.7 million or 28.8 percent of earned premiums.

The calendar year to December 31 had the lowest level of insured losses arising from catastrophic events in the US for over ten years. And elsewhere as well, insurance claims from catastrophic events were also lower than normal. Acquisition costs for the year were $13.5 million (1996: $11.8 million), while general and administrative expenses were $8.7 million (1996: $9.9 million).

In the quarter and year ended December 31, 1997 the ratio of acquisition costs and general and administrative expenses to earned premiums was 24.1 percent and 19.7 percent, respectively. In the corresponding periods in 1996, the ratio was 18.7 percent and 19.2 percent, respectively.

At December 31, total assets were $585 million (up 6.7 percent) and total shareholders' equity was $528.3 million, representing book value per share of $19.94.

Meanwhile, on Tuesday, the board of directors declared a quarterly dividend of $0.3175 per share, and a special dividend of 80 cents per share, both payable March 26, 1998, to shareholders of record March 10.