quarter of 1998, a fall of 148 percent from the $1.21 million profit the company recorded in first quarter 1997.

Nobel said the losses of 13 cents per share was due to claims from prior years that were now affecting the company's bottom line. Nobel is a property and casualty underwriter for the explosives, specialty commercial trucking, propane, personal lines and surety bonds industries.

As previously announced Bermuda-based RenaissanceRe Holdings Ltd. is in the process of buying Nobel for $54.1 million in cash plus $8.9 million in financing to support the company's obligations during its planned liquidation.

Nobel announced on Friday it had made an agreement to sell a portion of its surety bond business for about $3.55 million, to be completed in the second quarter.

Nobel's consolidated combined ratio was 137.2 percent for 1998, significantly higher than the 1997 combined ratio of 92.1 percent. Loss ratio for 1998 was 76.8 percent, compared to 48.2 percent for 1997.

"The expense component of the ratio was 60.4 percent for 1998, compared to 43.9 percent for 1997,'' Nobel stated. "The higher expense ratio was primarily due to the continuing shift in the premium mix to lines which traditionally have higher expense ratios, in addition to costs incurred related to the impending sale of the US companies to RenaissanceRe Holdings, Ltd. The increase in the loss ratio is due to the adverse development in losses for prior accident years.'' Nobel earned net premiums of $8.13 million in first quarter 1998, a fall of about six percent compared to first quarter 1997.

"The slight decrease is primarily due to decreased volume,'' the company stated. "The 1998 claims adjusting fees were up slightly from 1997, due to increased storm activity.'' Shareholders' equity was $55.09 million at March 31, or $12.12 per outstanding share, compared to $55.62 million, or $12.34 per share at December 31. "The decrease resulted from reductions in profitability and unrealised investment gains,'' Nobel stated. The company will hold a shareholders' meeting at Marriott Castle Harbour Hotel, 10 a.m. June 18 to vote on the RenaissanceRe sale. Nobel last traded at $13.25 per share on Friday.