Holdings Ltd. jumped 31.6 percent to $19 million, moving profit for the first nine months to September 30 up by 8.3 percent to $53.7 million.

Third quarter net income per share climbed from 55 cents in 1996 to $74 cents in 1997. But for the nine month period, net income per share dropped from $2.13 in 1996 to $2.06 in 1997.

Terra Nova's gross premiums written soared 64 percent to $100.4 million in the third quarter, taking gross premiums written for the three quarters up 33.5 percent to $432.1 million, primarily as a result of the group's participation in the Octavian Syndicates this year.

Net premiums written in the third quarter rose 78.6 percent to $90.5 million, and jumped 33.7 percent for the first nine months to $368.8 million.

Chairman and CEO, William O. Bailey, said, "Terra Nova continues to produce improved earnings in spite of the highly competitive markets in which the group operates.

"The strong growth in net premiums written will result in improved cash flow and investment income for the balance of this year and 1998.

"The acquisition of Corifrance during the quarter has increased our presence in continental Europe providing improved access to an increasingly important insurance and reinsurance market.

"The purchase of additional capacity in the Octavian Syndicates at the Lloyd's auctions will continue to increase the insurance component of our total business at a time when market conditions make internal expansion in the reinsurance sector less desirable.

"Our increasingly strong balance sheet, growing shareholders' equity and further upgrades in claims paying ratings by the rating agencies this year provide us the ability to further develop our business as opportunities arise.'' Losses and loss adjustment expenses rose from $42.2 million in the 1996 third quarter to $61.9 million in 1997 and rose from $137 million in the 1996 first nine months to $178 million in 1997.

Net realised investment gains after tax were $2.9 million in the third quarter, compared to a $1 million loss in the same period in 1996. And for the nine month period they were $8.2 million, up from $7.5 million a year ago.

The underwriting profit was $3.5 million for the nine months, down from $5.4 million from the year before.

The nine-month combined ratio increased from 97.4 percent to 98.7 percent, although the loss ratio was 64.5 percent for the 1997 period, compared to 65.2 percent in the nine month period in 1996.

The expense ratio rose, however, went from 32.2 percent to 34.2 percent, reflecting the higher proportion of insurance business written in 1997.

The company said that the combined ratios reflected the absence of significant large losses in both years, and stable loss development for prior years.

Net investment income was $21.5 million for the third quarter of 1997, a rise of 8.2 percent from the same period the year before. It was up 6.6 percent for the nine month period to $62.5 million. The increase in invested assets was partially offset by lower portfolio yields.

Total assets rose $300,689,000 in the nine months to September 30. During the same period, shareholders' equity rose 15.2 percent to $459.5 million.

That was primarily as a result of retained earnings of $50.6 million and an increase in the unrealised appreciation of investments, net of taxation, of $17.2 million, partially offset by the firm's repurchasing $10 million of its common stock under its stock repurchase plan authorised in the second quarter.

Book value per share rose during the nine months 17.2 percent to $18.09.

Terra Nova declared a quarterly dividend of five cents per ordinary share, payable December 29 to shareholders of record December 5.

Terra Nova stock was trading around $28 per share yesterday.