income to June 30 of $19.3 million or $0.74 per share, compared with last year's second quarter net loss of $7.3 million ($0.28 per share).

The New York firm, 58 percent owned by Bermuda-based holding company, Zurich Centre Investments Ltd., realised half year profits of $16.7 million or $0.64 per share, compared with a 1994 first half loss of $21.8 million ($0.83 per share). ZRC is 42 percent publicly held.

Through its operating subsidiary, ZRC is the principal underwriting affiliate of the Zurich Insurance Company in the North American market for traditional property and casualty reinsurance.

Excluding realised capital gains, after-tax net operating income was $3.7 million ($0.14 per share) for the quarter ended June 30, compared with last year's $1.1 million ($0.04 per share) for the same period.

Realised capital gains for the quarter, net of tax, were $15.7 million ($0.60 per share), compared to last year's second quarter realised capital losses of $8.3 million ($0.32 per share).

Net premiums written were $129.1 million for the second quarter, representing a 122 percent increase over last year. The growth reflects, in part, premiums resulting from the acquisition of Re Capital Corporation.

ZRC's half year statutory combined ratio improved to 108 percent from last year's first six months of 123 percent, due to a lack of catastrophe losses in the first six months of 1995 and reduced operating expenses relative to premium volume. For the first six months of 1994, catastrophes added 13.3 percentage points to ZRC's statutory loss ratio.

ZRC CEO Mr. Steven M. Gluckstern said: "This quarter's premium growth is consistent with the tremendous growth we have seen over the past six quarters, however, we believe overall market pricing conditions continue to deteriorate.

"Because our return on equity pricing mechanisms provide us with a consistent measure of risk and reward, based on underlying exposures and not fluctuations in market pricing conditions, we are nonetheless confident of the high quality of the business we are writing.'' President and chief operating officer, Mr. Richard E. Smith, added, "We do not expect to see the same rate of growth if market pricing continues to produce low returns on much of the business in the reinsurance marketplace. We do see, however, attractive returns for ZRC in the area of specialised transactions and continue to be extremely pleased with our growth that continues despite the soft market conditions.'' Pre-tax investment income increased to $20.6 million for the second quarter of 1995, from $11.2 million reported for the second quarter of 1994.

Senior vice president and chief financial officer, Mr. Peter R. Porrino said: "Our total investments continue to increase as a result of our higher premium volume along with Re Capital's acquired assets and are now in excess of $1.4 billion.''