$139.3 million or $6.06 per share, for the year to December 31, a decrease of 12 percent when compared with the year before.

Net operating income was $142.1 million for the year, down $17 million.

But chairman, president and CEO, James N. Stanard stated: "Overall this was a very good year for RenaissanceRe. We continue to achieve one of the highest returns on equity in the property and casualty insurance industry, despite softening prices and fierce competition in both the insurance and reinsurance markets.

"We were, however, aided by a mild year for natural catastrophes, following three worse than average years in 1994 through 1996.'' Return on equity for the company was put at 24.3 percent.

RenaissanceRe, like others in the insurance and reinsurance market, are weathering an assault on top line growth in a soft market. Written premium for the company has been on the decline in the property catastrophe business over the last couple of years.

But senior vice president and CFO, John M. Lummis, said the company is projecting modest increases in written premiums in the years ahead. He said, "The sources of growth in the near term will be our primary businesses (subsidiaries Glencoe Insurance Ltd. and DeSoto Insurance Co.) and not our reinsurance activity.'' The company had gross premiums written in 1997 of $228.3 million, 15.4 percent lower than in 1996. Net premiums were 22 percent lower at $195.8 million. Net premiums earned declined 16.3 percent to $211.5 million.

Claims and claim adjustment expenses were $50 million or 23.7 percent of net premiums earned, compared to $86.9 million or 34.3 percent of net premiums earned in 1996.

The expense ratio increased from 17 percent to 23.8 percent. The combined ratio declined from 51.3 percent to 47.5 percent.

Operating expenses were $25.1 million, a more than 50 percent increase attributable to increased staffing and the company's continuing investment in computer modelling technology.

Net investment income rose nearly 12 percent to $49.6 million. At year end, the insurer held investments and cash totalling $859.5 million, and the fixed income portfolio had a "AA'' average credit rating.

Net unrealised depreciation on investments as of December 31 was $10.2 million. The company had dollar denominated fixed income investments in Korea, Thailand and Indonesia which totalled $66.2 million at December 31., and which represented $12.7 million of unrealised losses, principally as a result of Asian exposures.

RenaissanceRe sold all of its equity investments in December and January to rebalance the risk profile of the investment portfolio. At the end of the financial year, shareholders' equity was $598.7 million, some $52.5 million higher than the year before. Book value per common share at the end of the year was $26.68, up from $23.21 the year before.

Total assets grew some $56 million to $960,749,000.

Net operating income for the fourth quarter, excluding realised investment gains and losses, was $35.2 million, down from $41.4 million for the same period in 1996. Net income dropped from $41.2 million to $31.4 million. Gross premiums written for the three month period were down from $16.8 million to $12.7 million. Net premiums written were $10.8 million, $4.1 million less than in the final frame of 1996. Net premiums earned were down from $65.7 million to $51.1 million.

Fourth quarter claims and claim adjustment expenses were $10 million or 19.6 percent of net premiums earned, less than half of the $21.3 million for the same period the year before, and some 32.5 percent of net premiums earned.

Operating expenses for the final quarter were up to $7.0 million, from $5.1 million. Net investment income, exclusive of realised and unrealised investment gains and losses, was $12.6 million, compared to $11.3 million.