its losses for 2000 were four times worse than in the same period the year before.

And losses look likely to continue through 2001, according to senior management of the company.

Net loss stands at $27.0 million for 2000, compared to a net loss of $4.8 million for 1999 (including discontinued operations).

Stephen Crane, President and Chief Executive Officer said: "We anticipate an improved performance from continuing operations in 2001, however our operating margins remain under pressure and this is likely to delay the company's return to profitability for most or all of 2001.'' The company reported a net loss from continuing operations of $16.0 million for the year, compared to a net loss from continuing operations of $4.8 million for 1999.

Following a review of its operations, the company decided to discontinue its loss-making reinsurance and underwriting management segments.

The company said that in light of this decision and following a comprehensive review of the value of all of its intangible assets, it took a charge against income for the year of $6 million to write off a significant portion of its goodwill, the majority of which was related to the discontinued segments.

The write-off of goodwill, together with additional strengthening of reserves against losses arising from discontinued programmes in the reinsurance segment, resulted in losses from discontinued operations of $11.0 million for the year and $8.6 million for the quarter in 2000, compared to losses of $1.6 million for the year and $2.1 million for the quarter in 1999.

Mr. Crane added: "The majority of our losses for 2000 were charges relating to discontinued programmes and other past events which are not indicative of our ongoing operations.

"We believe we have been prudent in establishing and augmenting provisions for the resolution of disputes and in responding to actuarial indications for Incurred But Not Reported losses in our risk-taking operations.

"While we can never be certain that we will never have to revisit these issues, the object of our ongoing efforts has been to get the past behind us and minimise the chances of significant future charges relating to these matters.''