Bermuda reinsurer LaSalle Re has had its 'in-force' business taken over by new kid on the block Endurance Specialty Insurance Ltd.

The move will see 20 LaSalle staff - many of them Bermudians - move over to Endurance, and the company is taking over the lease on LaSalle's current office space in the Continental Building.

This follows on from LaSalle's merger with the Trenwick Group in September, 2000 with the result that the companies came under one Bermuda holding company, La Salle Re Holdings Ltd.

But now the company's business is to shift to Endurance, which Endurance CEO Kenneth LeStrange said was retroactively in effect as of April 1.

Endurance was incorporated in the wake of a void in capacity following the September 11 terrorist attacks. It was set up by Aon Corporation and Zurich Financial Services and other companies, and so far had 43 employees.

Mr. LeStrange said in taking on 20 LaSalle staff, that was "substantially all of their staff".

Speaking of taking on LaSalle's in force business, Mr. LeStrange said it meant that Endurance had taken on "substantially" all of LaSalle's business.

He called it a "quota share reinsurance contract", in which Endurance took out LaSalle's premiums and responsibility for future claims.

But he said that renewal and new business would be written by Endurance.

All of the more than 60 staff from the joint companies are to be based in Bermuda.

Meanwhile, Bermuda-based Trenwick Group recorded a net loss of more than $1 million in the first quarter of 2002, but said it had seen a more than 30 percent increase in business written.

Trenwick said its total net loss for the quarter ended March 31, 2002 was $1.3 million in marked contrast to net income for the same period last year of $18.9 million

In announcing its results, the company said its operating results were impacted by an operating loss of $14.1 million, or $0.38 per diluted share.

The loss was said to stem from approximately $23 million in additional pre- and post-tax underwriting losses incurred related to the September 11 terrorist attacks.

In addition, the company said it had Lloyd's syndicates in runoff, which adversely affected the quarter's results by $4.0 million.

In tandem with the reported loss, the company said it had seen a 32 percent increase in gross premium writings and a 22 percent increase in net premium writings for the quarter, over last year for the same period.

Trenwick put shareholders' equity at $484.1 million or $13.15 per share, compared to $498.3 million or $13.52 per share at December 31, 2001.

Gross premium writings totalled $465.6 million for the first quarter of 2002, compared to $353.6 million for the first quarter of 2001. Net premium writings totalled $317.2 million for the quarter compared to $260.7 million for the first quarter of 2001.

The company said the increase in gross and net premium writings was mainly attributable to rate increases experienced in all principal segments of the group's operations.

Trenwick's net investment income was $29.3 million in the first quarter of 2002 compared to $32.2 million for the first quarter of 2001. The company said the decrease was primarily attributed to an overall decline in fixed income market yields in 2002 compared to 2001.

Trenwick posted net realized investment gains of $1.1 million in the quarter ended March 31, 2002, compared to net realized investment gains of $7.8 million for the quarter ended March 31, 2001.

Trenwick also reported that it had adopted a new accounting standard which suspended systematic goodwill amortisation and instead uses periodic tests for goodwill recoverability.

This standard has been adopted by Trenwick effective January 1, and required Trenwick's Bermuda holding company, LaSalle Re Holdings Limited, to credit the negative goodwill balance of $11.6 million to operations as a cumulative effect of an accounting change.

Trenwick will conduct impairment tests on the remaining goodwill balance during the second quarter of 2002 and record any impairment noted as a result of such tests as a cumulative effect of an accounting change.

The Trenwick Group also declared a dividend to shareholders in the amount of $0.04 per common share, to be paid on June 28, to shareholders of record as of June 14, 2002.