$5,011,028 for the six months to June 30, when compared to the first six months of 1996.

But president and CEO, Glenn Titterton reported that each operating subsidiary exceeded budgeted goals.

He said, "Loss experience in 1996 was particularly good and we anticipated that the experience in 1997 would not be as good. Consequently, our budgets projected lower earnings.

"The half year results were mixed. In some lines of business, notably Health, loss experience deteriorated, but in many lines of business the experience continued to be good.

"Our budgets also anticipated other pressures on income, as well as rising costs, but we are pleased to report that we outperformed budgets in each of the profit centres and overall results were very satisfactory.'' Total income was up eight percent to $29.6 million. A continuing decline in property and motor rates, and competitive pressures elsewhere, were offset by continuing premium growth in other lines. Gross premiums earned rose five percent.

Investment income fell one percent, reflecting reduced dividends on some investments and lower interest rates available on the reinvestment of redeemed funds. Total expenses were up 12 percent to $24.5 million, as claims and policy benefits rose 14 percent. Operating expenses were up seven percent, due in part to increased legal expenses.