equity despite returning $100 million to shareholders by way of share repurchase, the company's latest results show.

For first quarter ended March 31, unaudited shareholders equity -- a company's net worth -- was $540.3 million compared to $546.2 million three months earlier.

The equity level continues above the $500 million mark even though RenaissanceRe returned $28 million in first quarter 1997 and $82 million in fourth quarter 1996 to shareholders through two share repurchases. A soft market has made deploying capital back into the reinsurance market challenging.

The results also show that on March 31, RenaissanceRe which was incorporated in June of 1993, had amassed total assets of $962 million, up six percent from $904.8 million three months earlier.

"During the first quarter of 1997, we continued the implementation of our capital management strategy with the repurchase of 813,190 common shares for a total value of $28.1 million through our public tender offer and the increase in our ordinary dividend to a $1 annual rate,'' RenaissanceRe chairman, president and CEO James Stanard said.

The company also issued $100 million of 30 year capital securities with a yield of 8.54 percent. The capital securities transaction, a move separate from share repurchase, traded short term debt for long term debt. The company's short term bank loan remains $50 million.

"These capital transactions continue to provide RenaissanceRe with a capital structure that meets the security needs of our clients, while also providing our shareholders with an attractive return,'' he said.

Mr. Stanard made the comments in the company's first quarter results released on Monday evening.

In the results, the company said competition in the property catastrophe reinsurance market continues.

For first frame, profit fell about ten percent compared to first quarter in the prior year.

Net income for first quarter 1997 was $35.4 million, or $1.52 per share, compared to $39.2 million, or $1.50 per share.

Gross premium written fell to $120.4 million from $140.5 million, a decline of 14 percent.

Quarter net premium written was $117.6 million compared to $138.7 million, down 15 percent.

Quarter net premium earned was $55.9 million compared $61.7 million for the same quarter, a nine percent decline.

RenaissanceRe also said net operating income, excluding realised investment gains and losses, was $35.3 million, or $1.51 per share, compared to $39.8 million, or $1.53 per share, earlier. Per share amounts for 1997 benefited from lower shares outstanding as a result of share repurchases.

Net investment income, excluding realised investment gains and losses, for first quarter was $12.1 million compared to $10.1 million for the same period in 1996.

Unrealised gains on the company's fixed maturity portfolio decreased $5.5 million due to interest rates.

The increase in net investment income for the quarter was due to higher average invested assets, due to cash provided by operations, partially offset by amounts used to repurchase common stock, the company said.

Claims and claim adjustment expenses incurred for the quarter was $14.2 million, or 25.5 percent of net premium earned, compared to $20 million, or 32.4 percent of net premiums earned, earlier.

Total expenses were $31 million compared to $31.9 million.

Operating expenses increased to $5.9 million for the first quarter compared to $3.3 million as a result of increased staffing at RenaissanceRe and continued development of subsidiary Glencoe Insurance Ltd.

The combined ratio for the quarter was 47.5 percent compared to 48 percent for the same quarter a year earlier.

Corporate expenses for the quarter include a one-time charge of $1.5 million related to issuing of $100 million in capital securities. The capital securities were issued by subsidiary RenaissanceRe Capital Trust.

Book value at March 31 was $23.62 compared to $23.21 three months earlier.