division of $7.3 million for the first quarter of the year -- a drop of $11.3 million in one year.

In the first quarter of 1999 - the three months ended March 31, the company reported a net income of $4.0 million. In the fourth quarter of 1999 the company had a net loss of $23.1 million.

The net loss per share from its reinsurance division for the three months ended March 31, 2000 was $0.63 compared to net income per share of $0.29 for the first quarter of 1999 and a net loss per share of $1.79 for the fourth quarter of 1999.

The net reinsurance operating loss for the first quarter, which excludes realised investment losses, was $0.51 per share.

ESG's Health Care division reported a loss of $2.9 million for the quarter or $0.25 per share.

For the three months ended March 31, 2000, gross premiums remained level with the same period in 1999, excluding the effect of $35 million of one-time premium written in the first quarter of 1999.

For the three months ended March 31, 2000, the Company wrote $111.8 million of gross written premiums, compared to $112.1 million for the three months ended March 31, 1999, excluding the effect of the one-time premium.

Total revenues for the three months ended March 31, 2000 were $60.4 million, consisting of net premiums earned of $58.0 million, net investment income of $2.9 million, realised investment losses of $1.4 million, gain on equity investments of $0.3 million and management fee revenue of $0.5 million.

Total revenues for the three months ended March 31, 1999 were $62.2 million.