ended March 31 of $22 million, a fall of about 33 percent from what it made in second quarter 1997.

Gross premiums fell 14 percent to $94.6 million. Net premiums earned increased by half a million to $41.9 million. Net investment income also increased by half a million to $8.6 million.

Losses and loss expenses for the quarter were $19.9 million, or 48 percent of net premiums earned, compared with $6.9 million or 17 percent of net premiums earned during the same quarter of 1997.

"Our strategy has been to gradually diversify into other specialised lines of business,'' chairman, president and chief executive officer Victor Blake said yesterday. "These other lines currently constitute approximately 30 percent of our business. We believe that, over time, this mix will give us superior results to a generalist reinsurer, and more stability than a monoline reinsurer.'' For the six months ended March 31 income was $51.7 million, down 15 percent over the same quarter in the last financial year. Gross premiums written were $104.3 million, or nine percent below the first half results in the previous financial year.

Losses and loss expenses for the six months were $28.6 million or 36 percent of net premiums earned, compared with $17.7 million percent or 21 percent in the previous first half of the last financial year.