a net loss of $2.6 million ($0.10 a share) for the 1995 first quarter to March 31. That is an improvement over 1994's first quarter when the firm lost $14.5 million.

The bottom line result came even though the company doubled its net written premiums, when compared with the same period in 1994.

This year's losS, the company said, was attributable to the realisation of after tax investment losses of $5.9 million. After tax realised capital losses for 1994's first quarter were $7 million.

Increased after-tax net operating income, excluding realised capital losses, was $3.3 million, compared to a loss of $7.6 million during last year's first quarter.

The company is 58 percent owned by Bermuda-based holding company, Zurich Centre Investments Ltd.

The improved results reflect: the absence of catastrophe losses, like those that occurred in the first quarter of 1994; continued gains in ZRC's investment income, as an outgrowth of increased cash flow generated by higher premium writings; and A significant decrease in the operating expense ratio from prior quarters.

Net premiums written were $115.6 million, representing an increase over the comparative period of 100.6 percent.

ZRC's statutory combined loss and expense ratio was still high at 107.1 percent, but significantly improved from the 138.1 percent in the first quarter of 1994.

The improvement in the combined ratio occurred because of the lack of catastrophe losses in the first quarter of 1995 and reduced operating expenses relative to premium volume. In the 1994 comparative period, the Northridge earthquake and winter storms added 27.1 percentage points to the loss ratio.

Executive vice president and chief operating officer, Mr. Richard E. Smith commented: "The improvement in our operating results, particularly the sharp year-to-year increase in net premiums written, provides further evidence of the market's acceptance of our approach as a customer-focused, innovative and technically-oriented reinsurer.

"Our reach into our specific markets will continue to grow as we develop premium through carefully targeted, appropriately priced opportunities.'' ZRC chairman, president and CEO, Mr. Steven Gluckstern said: "We crossed several mileposts after the quarter end. First we completed the Re Capital transaction in late April and with the closing of that acquisition, our second quarter financials will begin to reflect the results of Re Capital's former book of business.

"ZRC also received an initial `A' or `Excellent' rating by A.M. Best Company.

We believe our Best rating, achieved after only two years of operation, further underscores the tremendous progress ZRC has made in becoming an important presence in the US reinsurance market.

"Our continued advances during the first quarter recognise the strong and enduring relationships ZRC has built with its reinsurance intermediaries.'' The growth rate of other operating costs and expenses continues to decline as ZRC's underwriting and administration infrastructure is now largely in place.

The statutory other expense ratio for 1995's first quarter decreased to 7.2 percent from 10.8 percent in the first quarter of 1994.

Net investment income increased 61.6 percent to $16.7 million. The growth was caused by an increased cash flow resulting from higher premium volume and a higher yield on ZRC's investments.

Cash flow for the period was $68.9 million compared with the $24 million for quarter one of 1994 and $50 million for 1994's fourth quarter.

Senior vice president and chief financial officer, Mr. Peter Porrino said: "As you would expect, the company's steadily growing premium writings are generating significant cash flow that increases our total invested assets and results in greater investment income now, and in the quarters to come.

"The reduction in market interest rates that occurred during the first quarter reduced the unrealised losses embedded in the company's investment portfolio, thereby limiting the amount of realised losses recognised in the quarter, and contributing to an increase on ZRC's book value. At quarter end, our book value reached $23.11 per share, up $1.47 from year end.''