Risk Consultants (Bermuda) Ltd. (ARC) provided the company with administrative services.

The news came as LaSalle yesterday declared first quarter net income after minority interest, of $23,778,000 compared to $21.1 million for the same period to December 31, 1996.

ARC provided LaSalle with actuarial and financial reporting, accounting office space and other administrative services. The agreement was terminated during LaSalle's fourth quarter.

All of the personnel assigned to LaSalle Re by ARC have become employees of LaSalle Re and services performed by ARC have been assumed by the reinsurer.

In connection with the termination of the agreement, Lasalle agreed to purchase all of the fixed assets owned by ARC and utilised by the company for a purchase price of $1.5 million.

Meanwhile, for the first quarter's three months ending December 31, income before minority interest was $29.7 million, up from $28 million for the same period during the comparative period.

Earnings per share were up from $1.16 to $1.34, assuming dilution. Gross premiums written for the quarter were $9.6 million, compared with $5.2 million for the first quarter of the prior financial year. Net premiums earned were $37.9 million, compared with $43.1 million the year before.

Net investment income increased from $8.1 million to $8.5 million, due to a larger investment base.

Losses and loss expenses for the quarter were $8.7 million, or 22.9 percent of earned premiums, compared with $10.8 million or 25.1 percent of net premiums earned during the corresponding quarter of the previous year.

Chairman and CEO, Victor Blake said the first quarter, although traditionally a quiet underwriting period, was one of continued profitability.

"We continue to generate strong results, and to achieve one of the highest returns on equity in the property and casualty reinsurance industry -- in spite of ongoing competition.

"The increase in our premiums written over the quarter was due mainly to our strategy of selectively writing other lines of business, while maintaining our client base and the broad geographic spread in our core property catastrophe book.'' The loss ratio for the quarter was down from 25.1 percent to 22.9 percent. The expense ratio was down from 24.2 percent to 21.8 percent.

The combined ratio was 44.7 percent, improved from 49.3 percent. LaSalle Re Holdings Ltd., through operating subsidiary, LaSalle Re Ltd., writes specialist classes of reinsurance on a worldwide basis, with an emphasis on catastrophe cover.

In the company's recently released annual report, Mr. Blake commented that last year in the company's fourth year of operation, it was affirmed that the business strategy is sound; measures to protect the capital base have been put in place; LaSalle is well positioned because of a strong foundation and quality client base; and, the company has matured, as evidenced by a listing on the New York Stock Exchange.

Last year March, the company issued 3 million Series A Preferred shares in a public offering. In May, the company completed a $100-million tender offer, purchasing for cancellation 3,703,703 of its common shares at a price of $27 per share.

In July, LaSalle entered into a $100 million multi-year Catastrophe Equity Put (CatEPut) option programme. The option enables the company to put up to $100 million of equity, through the issue of convertible preferred shares at pre-negotiated terms, in the event of a major catastrophe or series of large catastrophes that cause substantial losses to the company or its subsidiaries.