Bermudian-based insurer's first quarter results with net income up 23 percent to $191.7 million or $1.69 per share.

That compared favourably with $155.4 million or $1.81 per share for the same period last year.

The company -- which last month changed its name from Exel to XL Capital in an attempt to reposition itself in the highly competitive market -- yesterday announced healthy results for the quarter ended February 28.

But its $1 billion February stock deal to buy US reinsurer NAC Re Corp. put the company in the ranks of the world's biggest 20 reinsurers will not impact on its quarterly results until it is completed later this year.

First quarter operating earnings, excluding realised gains on the sale of investments, swelled by more than 37 percent on 1998 results from $92.5 million to $127.1 million.

Gross premiums written in the first quarter doubled on the previous year's figures from $250.3 million up to $499.8 million while net earned premiums grew from $139.9 million to $263.5 million.

And net premiums written rose to $425.9 million compared with $217.4 million.

President and chief executive officer Brian O'Hara was quick to credit the strong results yesterday to the company's "underlying financial strength'' as well as the contribution from the merger with Mid Ocean and Brockbank.

"We are particularly pleased with the year-over-year growth in the premiums written by our insurance operations,'' he said.

"We were pleased to announce our merger with NAC Re Corporation during the first quarter and look forward to completing this transaction later this year.

"In addition we increased our presence in the investment management business through our taking an equity stake in a fund manager, Highfields Capital, in February.'' Economic operating income, which excludes amortisation of intangible assets as well as realised investment gains was $138.2 million for the quarter, up from $95.8 million for the same period last year.

The realised gains on the sale of investments was $64.7 million and amortisation of intangible assets was $11.1 million, compared with 1998 first quarter figures of $63 million and $3.3 million respectively.

Revenues in the first quarter were $434.3 million up from $275.6 million on the previous year.

Shareholders' equity remained steady on the last quarter of 1998 at $4.8 billion while total assets inched up from $10.1 billion on November 30, 1998 to $10.5 billion.

The first quarter combined ratio was 85.4 percent in 1999 compared with 81 percent in the year ago quarter -- both indicating underwriting profit.

The company's 1999 performance includes the consolidation of results of Mid Ocean Ltd., including its Lloyd's Brockbank operations, following the completion of XL's merger with Mid Ocean in August.

Prior to the merger, XL owned 26 percent of Mid Ocean.

The merger saw XL's equity in the net earnings of its affiliates for the first quarter endure a big drop from $15.2 million in 1998 to $1 million in 1999 since the Mid Ocean earnings were included in overall results.

Brian O'Hara