179 percent to $47.7 million or $0.85 a share for quarter one of 1995, compared to $17.1 million or $0.32 per share over the same period last year.

For the three-month period to March 31, operating earnings were $49.6 million, excluding net realised investment losses of $1.8 million, compared to $20.4 million and net realised investment losses of $3.3 million for the first quarter of 1994.

Total assets during the quarter leapt 15.4 percent to nearly $1.276 billion, according to unaudited figures.

The board of directors declared a regular dividend of $0.10 per common share, payable June 1 to common shareholders of record May 15.

Gross and net premiums written rose 17.8 percent to $131.5 million for the three month period, from $111.6 million. Total revenues were $66 million, comprising $49.7 million of net premiums earned, net investment income of $18.1 million and net realised investment losses of $1.8 million.

Net investment income for the first three months of last year was $9.9 million, excluding net realised investment losses.

President and CEO Mr. Herbert N. Haag credited a strong January renewal season, improved investment performance and no material impact from the Kobe earthquake or the European floods.

Losses and loss expense were $13.7 million or 27 percent of net premiums earned, relating primarily to Kobe and the North European floods, both of which occurred in January. By comparison, last year's first quarter losses and loss expenses reached $19.9 million or 58.9 percent of net premiums earned for the quarter, relating entirely to the Northridge earthquake.

Mr. Haag said, "We have continued to stay focused on our core catastrophe reinsurance business and build on our strength and experience as the leading specialised catastrophe reinsurer. With increased price competition in many markets, we have consciously limited our growth and supported only adequately rated programmes.'' At the end of the quarter, the underwriting portfolio included 47 percent from North America, 22 percent from Europe, 22 percent from Asia, Australia and New Zealand, eight percent from Latin America and the Caribbean and one percent from Africa.

Mr. Scott D. Moore, senior vice president and chief financial officer commented: "Fixed income market conditions in the first quarter of 1995 improved considerably from those experienced in 1994. The increase in our investment income over the prior year reflects these improved market conditions, our large capital base and the successful execution of our investment strategies to maximise returns while maintaining a high quality, liquid investment portfolio.'' Mr. Haag said second quarter renewals were being completed with activity primarily in Japan and the US. Premium income is expected to exceed that written during 1994's second quarter.

"As we expected, the Kobe earthquake did not significantly increase Japanese insurers' demand for catastrophe coverage, and there was considerable competition amongst reinsurers for Japanese business, in particular for windstorm covers. Despite competitive market conditions, our ability to select well rated programmes and avoid others resulted in increased premium writings from Japan, our second largest market. In the US, demand continues to be strong and pricing has remained attractive.''