record $17.9 million net income for the year to December 31, 1996, a more than 46 percent improvement over the $12.2 million profit in 1995.

President and CEO, Jens Juul, said, "Scandinavian Re's achievements during 1996 were quite substantial: a significant increase in paid-up capital, excellent assigned ratings by both Standard & Poor's and AM Best, an increased client base now spanning 20 countries on four continents and an underwriting profit for the eighth consecutive year.'' He added that new clients were added in Argentina, Japan, South Africa, the US and the UK.

Standard & Poor's in February 1996 gave Scandinavian Re a claims-paying-ability rating of A .

And Mr. Juul said that AM Best has assigned a rating of A (Excellent), citing the company's excellent capitalisation, profitability and the recognition of Scandinavian Re as a lead provider of finite capacity in the global marketplace.

Executive vice president and chief financial officer, Dave Brining, said the company produced another solid underwriting and investment performance for the year with an increase in business volume.

Net premiums earned increased year over year from $35.4 million to $41.3 million, as underwriting fees dipped by about $100,000 to $4.4 million.

After general and administrative expenses, the underwriting profit was a record $5.4 million. Net investment income increased from $6.7 million to $8.5 million, while realised capital gains were $4 million (1995: $1.2 million).

Scandinavian Re was founded in 1988 with capital of $25 million. Capital and surplus has grown substantially, which has included additional capital contributions from Sirius.

Capital was increased last December by about $150 million, through the issuance of preference shares totaling a billion Swedish Krona. The issue was fully subscribed by Sirius International Insurance Corp.

Vice president and controller, Mark Kaplen, said, "Capital, surplus and retained earnings stood at $288.3 million at December 31, 1996.'' Henry Withinshaw, the assistant vice president in charge of the London representative office said, "The London office continued to develop contacts and to create awareness amongst Lloyd's brokers regarding Scandinavian Re's products and our problem-solving techniques.

"During the year, several new clients were added and a number of Syndicates were also assisted in solving their Lloyd's Dollar Trust Fund requirements through the design of a new catastrophe cover combination product.''