Bermuda-based political risk insurer Sovereign Risk Insurance Ltd. yesterday announced its financial results for its fourth year of operations.

For the fiscal year ending June 30, 2001, Sovereign underwrote 52 new political risk insurance policies.

Sovereign's gross premium revenue was $52.5 million, with net revenue of $40.7 million.

This compares with $31.3 million in gross premium revenue and $23.5 million in net revenue in FY 1999/2000. Sovereign's combined ratio for the year was 40 percent and expense ratio was 11 percent.

Price Lowenstein, President and Chief Executive Officer of Sovereign, said he was "very pleased by these results".

He added: "In addition to very positive revenue growth, we also achieved a number of key strategic goals this year. We believe that we are well positioned for further growth of our business in year five and I would like to thank our clients and our two shareholders, ACE Bermuda and XL Insurance, for their tremendous support this year."

Brian Duperreault, chairman of ACE Bermuda Insurance Ltd. said: "These results confirm that Sovereign is one of the world's pre-eminent political risk insurers after only four years in business. ACE Bermuda is delighted by Sovereign's results and we look forward to working with XL Insurance and the staff at Sovereign to further strengthen and build Sovereign's world-wide business."

Brian O'Hara, Chairman of XL Insurance Ltd. said: "Sovereign's significant increase in volume and revenue this year attest to the global recognition and credibility they have established. We are excited about working with Sovereign and ACE Bermuda to achieve our common goal of building Sovereign into the most innovative and respected political risk insurer in the world."

Sovereign is a specialised political risk insurer and reinsurer based in Bermuda. Sovereign's portfolio exceeds US$4 billion of exposure spread over 60 emerging markets.

Sovereign is a 50-50 joint venture between XL Insurance Ltd, a wholly-owned subsidiary of XL Capital Ltd (NYSE: XL), and ACE Bermuda Insurance Ltd., a wholly-owned subsidiary of ACE Limited (NYSE: ACL).