quarter net operating income as a result of increasing competition in the catastrophe insurance market.

The company earned $24.1 million (92 cents per share) before realised gains for the three months ended June 30, 1996, down four percent from $25 million in the same period in 1995.

For the six months to June 30, the company reported net operating income of $47.6 million before realised gains, up 31 percent from $36.4 million in the first half of 1995.

Premiums written rose 10.3 percent to $80.6 million in the first half of the year, but slipped from $19.6 million to $18.5 million in the second quarter.

"We are pleased with the results for the first six months of 1996, and in particular growth of premiums written,'' said IPC president John Dowling.

"This growth was achieved despite an increasingly competitive market, reflected by softening of rates which declined generally in the range of ten percent but by as much as 20 percent in some cases.

"Our increased premiums emanated from both the US and non-US markets, and represent new business as well as better signings from exising clients.'' IPC's results come just days after fellow catastrophe insurance GCR Holdings reported its quarterly earnings fell 22 percent in the second quarter. GCR also reported a softening of premium rates by ten percent in the US and 15 percent in Japan.

IPC also said its results were affected by $2 million spent in an abortive bid to take over privately-held cat insurer Tempest Re, which was subsequently merged with ACE Ltd.

It said its loss experience was "unexceptional and its loss ratio for the quarter was 12.86 percent, compared to 7.79 percent in 1995.

For the half year, it fell from 32.58 percent in 1995 to 18.36 percent this year.

Total assets at June 30 were $538 million, an increase of 10.9 percent over total assets at December 31, 195.

At a Glance (All figures in '000s, except per-share amounts) (Figures in brackets signify losses) Jun.30 Jun.30 Pct.

1996 1995 Change Net Income $23,181 25,100 -8% Earnings per share $0.89 $0.98 -9% Realised Invst Gain (875) 66 N/A