million for the second quarter to March 31, when compared to the same three month period the year before.

Net income per share rose from 45 cents to $1.41, after the three-for-one split of company shares on March 2 is factored in.

Production from ACE USA and the group's Lloyd's syndicates led to contributions to the bottom line and helped the company demonstrate growth in both gross and net premium volume.

Chairman, president and CEO of ACE, Brian Duperreault said, "This quarter, ACE increased its purchase of reinsurance to protect the company's individual business segments. While this impacts our net production, it also improves our overall risk profile.'' Gross premiums written during the quarter increased by 19.4 percent to $242.9 million, an improvement over the $203.3 million for the comparable quarter last year.

Net premiums written rose 4.3 percent to $196.6 million and net premiums earned rose 16.5 percent to $184.7 million.

For the first half of the year gross premiums written were up 23 percent to $413.1 million; net premiums written rose 8.2 percent to $323.6 million; and net premiums earned were up 9.1 percent to $352.6 million.

Excluding net realised gains or losses, net investment income was up 25.9 percent to $73.1 million for the second quarter, and up 11.6 percent to $131.5 million for the six month period.

During the second quarter ACE had net realised gains of $145.6 million (1997: net realised losses of $2.3 million). For the six months they had net realised gains of $173.1 million (1997: net realised gains of $39.4 million).