reduced gross premiums written by Starr Excess Liability Insurance Co., Ltd.

by 35 percent in the first six months of the current fiscal year.

The gross written premiums for the first two quarters to June 30 were $39,182,000, compared to $60.2 million for the comparative period a year ago.

And premiums earned fell 5.3 percent to $46,302,000.

But operating income increased 14.1 percent to $14,264,000, compared to $12,504,000 for the first six months of last year.

The company said that it expects its "recently introduced new policy form will be a major force in retaining renewals and acquiring new business''.

Starr's senior vice president, underwriting, Mike Bouris, said: "The reduction reflects a combination of increased attachment points, reduction in limits ordered, softer pricing and the impact of multi-year prepaid programmes.

"We continue to maintain our underwriting discipline and make specific case by case account decisions on renewal pricing.'' The combined ratio is up 2.2 points from the comparative period at 98.2 percent. Policies in force of 279 remain largely unchanged from the 281 in force at year end.

Starr Excess offers excess general liability, directors & officers (D&O) liability and professional liability insurance to the world's major corporations, underwriting business from its Bermuda head office, while maintaining a service office in London.

The company issues policies with a minimum attachment point of $25 million and offers capacity of up to $25 million for professional, $50 million for D&O and $150 million for general liability cover.

The company's assets rose by more than $110 million to $582,763,000 over the 12 months to June 30, while liabilities rose nearly $68 million to $298,242,000.

Shareholders' equity at June 30 was $44 million higher than a year ago at $284,521,000.