of results from its previous financial year despite competitive pressures in reinsurance and insurance market.

The company yesterday reported net income of $130 million, or $2.30 per share, for the third quarter ended June 30, a 147 percent gain compared to the same quarter in fiscal 1996.

The company's profits for the first nine months of the current fiscal year was $333.7 million, or $5.77 a share, compared to $202.8 million, or $4.36 per share in same period fiscal 1996.

ACE posts strong results "In the face of continuing soft market conditions, particularly in excess liability, directors & officers liability and more recently, property catastrophe reinsurance, our earnings are especially strong,'' ACE's chairman, president and chief executive officer Brian Duperreault stated in a press release.

Mr. Duperreault said the company's strong financial returns were a direct result of ACE's strategy to diversify its lines of business in a competitive market. The company owns three Lloyd's managing agencies, and also purchased Bermuda-based catastrophe reinsurer Tempest Reinsurance Co.

"The significant increase in our return to shareholders is the direct result of our diversification strategy, particularly the Tempest and Lloyd's acquisitions as well as substantial contributions from financial lines.'' In the third quarter ended June 30 Tempest contributed $30.9 million in net premiums earned, adding up to $97.9 million for the first nine months of the current fiscal year.

The Lloyd's syndicates contributed $7.8 million to net premiums earned in the third quarter, adding up to $14.7 million for the first nine months of the fiscal year. ACE earned total net premiums of $163.6 million in the third quarter ended June 30, compared to $145.9 million in the same period last year.

With the acquisitions the company now has 250 staff in the London market and 140 staff in Bermuda. As of June 30 ACE had about $2.4 billion in shareholders' equity and about $4.8 billion in assets.

Chart: Page 31