successes to December 31, 1997 even though it lost millions in premium from a labour strike that hit its core customer.

OPL joined a list of Bermuda market companies who prevailed in the intensely competitive reinsurance market during a year when the stock and bond markets were substantially volatile.

In fact, OPL profit improved nearly 19 percent from $401 million ($2.97 per share) in 1996 to $477,115,000 ($3.64 per share) for the 1997 year, as OPL attained record levels of revenue, gross premiums, earnings, total assets, and book value.

For the first time the company took in more than a billion dollars in revenue.

More than half of the year's bottom line profit for this 15-year-old company came from investment income, after the company restructured its $2.2-billion investment portfolio and took advantage of strong US equity markets.

The year's investment return was $81.3 million higher than 1996's exceptional investment earnings of $162.1 million, rising more than 50 percent to $243.4 million.

Revenues rose a stunning 34 percent from $847.8 million in 1996 to more than $1.1 billion. Gross premiums written shot up 29 percent to $720.1 million.

Total assets rose $475.5 million to more than $3.6 billion.

Book value increased from $1.9 billion ($14.24 per share) to $2.2 billion ($17 per share). Shareholders were paid a dividend of 90 cents per share (1996: 72 cents) during the year.

The company repurchased and cancelled four million shares of its common stock (a total of eight million over last three years), reducing shares outstanding from 135 million to 131 million, which increases net income per share and book value per share.

OPL president and CEO, Bruce M. Barone, said, "In a very tight reinsurance market, OPL continued to maintain consistently high standards; and we were still able to grow and be profitable.'' Mr. Barone reported to share owners that revenues and net earnings have more than doubled in the last four years, as more than 40 percent of the firm's book value has been produced.

OPL is owned by the 83,000 current employees of United Parcel Service (UPS), the parcel and document shipping firm.

UPS suffered from a 15-day strike during the year. OPL's core business is shipper's risk reinsurance premiums from UPS. But as a percentage of gross written premiums, it fell for the year from 68 percent (1996) to 51 percent (1997).

OPL estimates they lost at least $14.8 million in premium as a result of the UPS strike, but other premiums increased from $179.1 million to $353.4 million. Overall, underwriting income decreased by $12.5 million.

OPL vice president and secretary, Tom Butler, said, "We added 16 new reinsurance programmes in 1997 and the two new lines are marine & aviation and medical benefits. We are also doing specialty reinsurance.

"And we did not suffer any significant losses or loss expenses. That is unusual.'' Mr. Barone reported to share owners: "In all, we added 16 new programmes and increased premiums on other renewal programmes.

"By doing business with an increasing number of insurance and reinsurance companies, we're building the foundation for substantial, sustained financial performance.

"It's important to note, however, that we continue to prefer only reinsurance programmes with highly predictable results, stable underwriting earnings and low catastrophic exposure.

"In December 1997, we acquired the assets of Parcel Insurance Plan, LP, (PIP) a shippers insurance agent based in St. Louis, Missouri. PIP will complement our core business and future growth strategies.'' Established in 1983, OPL is one of the largest multi-line reinsurance companies.

Specialising in non-catastrophe lines of reinsurance, OPL provides shipper's risk, property, workers' compensation, automobile, aviation, marine, finite risk and other specialty reinsurance products.

In addition, through its subsidiary companies, Overseas Partners Capital Corp.

and Overseas Management, Inc., OPL is actively involved in the real estate, hotel and leasing business, owning and managing such properties as the Atlanta Financial Centre and One Buckhead Plaza in Atlanta, Georgia; 333 West Wacker in Chicago, Illinois; and, Copley Place, a landmark retail centre and office complex in the Back Bay area of Boston, Massachusetts.