or $3.55 a share for the year to December 31, when compared with 1995. The earnings represent a return on equity (average book value) of 19.9 percent, an improvement over 19 percent in 1995.

Net operating income, excluding realised gains, rose 24.4 percent to $88.7 million ($3.40 a share).

For the fourth quarter, net operating income before net realised gains and losses was $21.5 million, or 82 cents a share on a fully diluted basis, compared to $24.7 million or 94 cents a share for the comparative period in 1995.

Including net realised gains and losses, fourth quarter net income was $23.1 million or 88 cents a share, compared to $27.5 million or $1.05 per share for the same period in 1995.

Premiums written were up 7.2 percent to $111.6 million, as a result of new business and larger signings on existing business, which more than offset the effect of rate reductions.

Premiums earned for the year were up 11.9 percent to $113.6 million, and net investment income rose 26.4 percent to $28.9 million. A higher investment yield, as well as a larger average investment base (18.7 percent higher) were responsible for the investment results.

Losses incurred were $32.7 million, or 28.8 percent of earned premiums, and expenses were $21.8 million including the $2.1 million for IPC's initial public offering and its unsuccessful bid to acquire Tempest Re.

The fourth quarter losses of $10.4 million (35.8 percent of earned premium), included some additional claims from Hurricane Fran, some specific per risk losses and some additional reserve strengthening.

President and CEO, John Dowling said, "The past 12 months have been particularly exciting, with the company having gone public in March, and making the bid for Tempest Re shortly thereafter.

"We are especially pleased that we managed to achieve the growth of premiums written. This growth was achieved in an increasingly competitive market, reflected by the softening rates which declined generally in the range of 10 percent, but by as much as 20 percent in some cases.

"Our continued growth is as a result of the hard work and commitment of our underwriting staff, in developing long term, strategic relationships with clients of the highest quality, and at the same time maintaining strict underwriting discipline. Our growth has also been assisted by our increased financial strength.'' Total assets at December 31 had grown 13 percent from the year before to $548 million. Shareholders' equity was up 14.2 percent to $496 million.

IPC Holdings Ltd. directors approved a 31.75 cents per share dividend, payable March 27 to shareholders of record March 11.