the first quarter ended March 31, 2000.

But in a joint statement Robert A. Mulderig, chairman and CEO and John Kessock, Jr., president said: "Operating results for the first quarter reflect substantial improvement in fees, operating income, profit margins and Return on equity over the results for our last two quarters.

"However, comparisons to the first quarter of 1999 continue to reflect the decline in operating results which took place in the second half of last year.

"We believe this quarter's operating results demonstrate real progress toward a return to our historical levels of growth and profitability.'' Operating income amounted to $11.5 million for the first quarter, or $.28 per common share on a diluted basis, as compared to $18.5 million or $.40 per diluted share in 1999, as a result of a decline in margins.

Fee income decreased slightly in the first quarter to $45.3 million as compared to $45.5 million in 1999.

Net investment income increased by 74 percent to $12.6 million in the first three months of 2000, as compared to $7.2 million in 1999.

Included in Net investment income for the first time is $3.7 million from a special purpose entity, Endeavour Real Estate Securities Ltd. ("Endeavour'').

Endeavour was established by the Company's Financial Services segment to offer offshore investors an opportunity to invest in US real estate investment trusts.

Endeavour has attracted over $220 million from investors through March 31, 2000.

This investment income was offset by $1.4 million of Realised losses, $1.9 million of interest expense, $0.9 million of Operating expenses and $(0.8) million of Operating expenses increased 19 percent to $34.6 million for the quarter, compared to $29.1 million in the first quarter of last year.

The increase in operating expenses is attributable to an increase in personnel and other expenses to service the Company's existing businesses, the effect of recent acquisitions and the $0.9 million of Operating expenses from Endeavour.

Gross premiums written increased 45 percent to $335.2 million for 2000 as compared to $231.9 million in 1999, primarily as a result of the growth within the Programme Business segment.