$5.4 million in its third quarter, the company said.

The company said additions to its reserves, notably on its protection and indemnity account, contributed to the decline for the three months to September 30.

Total profits for the nine months to date totaled $32 million, better than the $25.1 million garnered in the same period in 1994.

The company reported an operating loss of $2.3 million for the third quarter to September 30, compared with operating income for the same period in 1994 of $7.9 million.

It brings operating income for the first three quarters down to $17.9 million, as opposed to $27.3 million in the corresponding period.

The GAAP combined ratios for the third quarter and first nine months were 113.8 percent and 105.2 percent respectively.

The company said the third quarter was adversely affected by the move to strengthen reserves, notably on the Protection & Indemnity (P&I) account.

The P&I-related charge was $15 million before tax, or $11.7 million after tax, contributing 11.3 percent to the combined ratio for the third quarter and four percent for the combined three quarters.

During the quarter, the company said it also added $21.3 million to its reserves for other lines of business, consistent with its commitment to enhance reserves.

Total revenues for the third quarter and the first nine months were up 14.1 percent to $145.6 million, and up 17.3 percent to $414.7 million, respectively.

Net investment income rose by 20.9 percent to $13.3 million in the third quarter.