virtually the same size as the previous year's profit. Gross premiums written came to $81.9 million, an increase of 15.6 percent over 1991.

The company made an underwriting loss of $49.5 million, a 58 percent deterioration on the previous year. Net investment income fell by $487,000 to $40.65 million. Assets fell by $6.9 million to $587 million while liabilities decreased by $12 million to $477 million.

GTE Re did not pay a dividend during the whole of the 12 months to December 31, 1991. The firm's cash and cash equivalents were slashed in half to $59.6 million.

Management said the loss was a combination of increased knowledge of the business the firm's cedants wrote and, secondly, the establishment of reserves for possible environmental claims.

GTE Re is a subsidiary of GTE Corporation -- the world's fourth-largest telecommunications firm.