cents per share, for the first quarter ended March 31, a gain of 32 percent over the same period last year.

Operating earnings in the first quarter increased about 14 percent to $16 million. Gross written premiums were $338.2 million, a gain of 49 percent over first quarter 1997. Most of the increase in gross premiums was due to the Group's increased participation in the Lloyd's market through its Octavian syndicate, from some related insurance from "orphan'' Lloyd's syndicates, and from Corifrance, which was acquired in September 1997.

Net written premiums at the first quarter were $281.8 million, up 54 percent from first quarter 1997.

John Dwyer, the company's new chairman, said the company had a good start to the 1998 financial year.

"Terra Nova has achieved a sound start to 1998 in difficult market conditions with strong growth in premiums and earnings over a year ago,'' he stated.

"Improved cash flow at the end of 1997 from our earlier Octavian growth has also generated stronger investment income in the quarter.'' The company's combined ratio was flat at 99.5 percent compared to 99.2 percent in first quarter of 1997. The loss ratio increased to 70.7 percent from 65.3 percent in first quarter of 1997.

"The first quarter 1998 ratios reflect the group's changed mix of business resulting from our greater participation in the Octavian syndicates and the impact of the orphan syndicate business,'' the company stated.

Total assets at March 31 were $2.5 billion compared to $2.2 billion at year end 1997.

The company recently received a two-level debt rating upgrade by Moody's Investor Services to "Baa1'', which Mr. Dwyer stated, reflected the improved strength of the group's financial position.

Mr. Dwyer officially became the new chairman of Terra Nova (Bermuda) Holdings Ltd. on Monday at the company's annual general meeting held in Bermuda. Nigel Rogers became the company's new chief executive officer. They took over from William O. Bailey who officially retired.

Mr. Bailey commented that the Bermuda market would continue to consolidate as the companies here strove to become bigger.

CHANGING FACES -- John Dwyer (left) has become the new chairman of Terra Nova (Bermuda) Holdings Ltd. Nigel Rogers (right) is the company's new chief executive officer. They take over from William O. Bailey (centre) who officially retired at the company's annual general meeting held on Monday.