Fuelled by a substantial increase in new business, property and casualty reinsurer, Zurich Reinsurance Centre Holdings Inc. (ZRC), has posted a healthy $8.9-million third quarter profit to September 30, representing 34 cents a share.

That compares to a net loss of $6 million (23 cents a share) for the 1994 third quarter.

Net income for the first nine months of the year was $25.6 million, as opposed to losses of $27.8 million in the comparative period last year.

ZRC is a New York-based company that is 58 percent owned by Bermuda-based holding company, Zurich Centre Investments Ltd.

Excluding realised capital gains, after tax net operating income was $3.8 million, compared to $1.8 million for last year's third quarter. It brought the operating income for the nine months to $10.8 million, against last year's comparative period of a net operating loss of $4.7 million.

Net premiums for the quarter rose 90 percent to $173.8 million, with year to date writings for 1995 at $418.5 million, a 102 percent increase over the first nine months of 1994.

During the quarter, the company entered into a domestic whole account quota share treaty with the Zurich American Insurance Group, in which Zurich American is expected to cede up to 11.5 percent of its domestic business.

The treaty contributed $33.8 million to ZRC's 1995 third quarter net premiums written and is expected to represent significant premium volume for the next several years.

The company also enjoyed strong July renewals in a difficult market, allowing it to further expand its in-force business at acceptable return-on-equity pricing levels.

ZRC's combined ratio was minimally improved at 107 percent for the quarter but showed a marked improvement over the comparative nine month periods, down from 117.7 percent to 107.6 percent. Catastrophe losses, the company said, added 8.3 percentage points to the 1994 nine month figure.

ZRC reported a declining expense ratio, but said the prime contributors to the combined ratio are the heavy weighting of long-tail casualty business (ZRC does not discount its reserves) and ongoing depressed market conditions.

Net investment income for the quarter rose 53 percent to $21.5 million. The quarter's total investment return was 2.37 percent. For the first three quarters it was up 65 percent to $58.8 million.