percent increase in net operating income and an 86 percent increase in net income compared to the same quarter last year.

The insurer and reinsurer reported net operating income for the first quarter 2001 rose to $37.3 million, compared to $30.9 million in the same quarter last year. Net income rose to $44.9 million compared to $24.1 million in 2000.

Operating earnings per share grew to $1.84, compared to $1.58 in the first quarter of 2000. Shareholders equity rose from the previous quarter to $747.1 million from $700.8 million at December 31 2000. Book value per common share also rose to $37.82 per share compared to $35.72 per share last quarter.

James Stanard, chairman, president and chief executive officer, said: "Strong performance during January 1 renewals produced excellent top line growth and enabled us to record a fourth consecutive quarter of record earnings per share and outpace the industry, once again, by achieving a 20.7 percent operating return on equity.

"While the upward pressure on property catastrophe prices continues, market conditions are becoming more competitive, even though pricing is not adequate in many segments. If this trend continues we will consciously slow our top line growth, focusing on writing high quality business that will enable us to meet (Wall) Street expectations for the year.'' Premiums written were also up, with the increase in net premiums driven by higher non-cat premiums. Gross premiums written for the quarter were $198.2 million, compared with $160.5 million the previous year, and net premiums written were $121.2 million, compared with $103.4 million. Net premiums earned for the quarter were $83.9 million, an increase of $31.1 million.

The company also reported an increase of $39.9 million, over last year's first quarter, to $214.7 million in total managed cat premiums written. This represents gross cat premiums written by RenaissanceRe Holdings and by the two joint venture companies, OPCat Ltd and Top Layer Re Ltd.

But there was a drop in net investment income, excluding realised and unrealised investment gains and losses, for the quarter to $17.9 million compared with $18.5 million the same quarter last year.

Operating expenses were up to $8.5 million, compared with $7.8 million in 2000. Claims and claim expenses during the quarter were $41.9 million, which is 49.9 percent of net premiums earned. The same quarter last year claims and claim expenses were $17.7 million, or 33.6 percent of net premiums earned.

The company said the increase in the loss ratio relates to the increase in non-cat reinsurance premiums written by the company, which typically produces a higher loss ratio than the company's principal product which is property catastrophe reinsurance. The increase also resulted from a higher level of attritional catastrophe losses during the quarter.

The company announced separately that it has filed with the US regulators a universal shelf registration statement that provides for the issuance of up to $200 million of securities.

The registration statement provides for issuance of a broad range of different types of securities, but RenaissanceRe indicated it is currently focusing on possible opportunities to issue senior debt securities. These may be offered in amounts, at prices and on terms to be determined at the time of the offering.

In the SEC filing the company said it plans to use the proceeds from the shelf offering for working capital, capital spending, acquisitions and other general corporate purposes.

James Stannard