percent increase in 1995 net profit over the year before.

They pegged profit for 1995 at $49.6 million. Charting the financial improvement over the last couple of years, the private company is optimistic about its future.

In a letter to clients, the company projected its net premiums earned during this year to December 31 will be about $132 million, which would be a 21 percent increase over the $108.9 million of premium earned in 1995.

Net premiums written are projected to be some $140 million this year, compared to $121.2 million last year.

Shareholder equity was $340.6 million at December 31, 1995, after a $31.9-million share repurchase at the end of the year. Six months later, shareholder equity had climbed to $369.2 million.

In the six months to the end of June, the company declared $33,948,250 in net income, annualised gross premium written of nearly $121 million and earned premium of nearly $63 million.

Some $25 million was set aside for losses, including losses paid, reported by clients and management reserves for future development. It also included losses reported under finite reinsurance agreements.

The company reported investment income of $12,181,831, net of realised investment gains of $323,468.

The company has total assets of more than a half a billion dollars.

CAT Limited grew its client base significantly in the year to July from 91 insureds to 150, through the help of some 30 intermediaries.

The company aims to be the lead reinsurer for their clients and by this past July, CAT either led or co-led 88.6 percent of their programmes.

President Charles L. Kline and CEO Paul T. Hasse jointly noted: "We remain the market leader in developing innovative property catastrophe solutions. Our reputation in this area continues to give CAT Limited access to unique opportunities which are not available to more traditional competitors.

"We are confident about CAT Limited's future in an industry which is becoming increasingly competitive.'' Some 50 percent of their limits exposed are in the US, with the balance spread around the world. US exposure has risen slightly but is distributed across 17 underwriting zones with minimal overlap.

The company changed its name to CAT Limited during the year to reinforce the corporate mission to solve property catastrophe needs with the best proprietary catastrophe management technology in the industry.

The company recently received an A.M. Best Company rating of "A'' (Excellent), reflecting the company's strong capitalisation, tightly controlled exposure management, geographically diversified book of business, good operating earnings and strong parental backing. The rating also reflected the company's established position as a catastrophe reinsurance specialist.