Stirling Cooke Brown Holdings Ltd. saw its losses more than double for the third quarter of 2001 and has discontinued its quarterly dividend payments for the "foreseeable future".

The company, which has been struggling to balance its books and has significantly changed its management and board, reported for the third quarter and nine months ended September 30, 2001, a net loss from continuing operations of $2.5 million for the third quarter, or ($0.26) per diluted share, compared with a $1.1 million net loss from continuing operations for the third quarter of 2000, or ($0.11) per diluted share.

The company reported a total net loss, including losses from discontinued operations, of $5.9 million, or ($0.61) per diluted share, for the third quarter of 2001, compared with a total net loss of $2.6 million, or ($0.27) per diluted share, for the third quarter of 2000.

Stephen Crane, chairman, president and chief executive officer of the company, said: "We have discontinued payment of dividends in order to make cash available for investment opportunities that we see developing in this rapidly changing environment."

The company, in a release to shareholders, noted that results from continuing operations in the third quarter continued to be hampered by the ongoing costs attendant to its run-off activities and costs associated with reinsurance disputes.

It also said in addition, the company continued to see deterioration in the results of its discontinued reinsurance segment operation due to increases in loss reserves against one particular programme which the company ceased writing in 1998.

For the quarter ended September 30, 2001, total revenues from continuing operations were $12.7 million, a decrease of $0.8 million from $13.5 million in the third quarter of 2000.

Brokerage segment revenues were $1.1 million in the third quarter of 2001, compared to $2.9 million in the third quarter of 2000. The decrease was primarily the result of reduced business being brokered due to significantly diminished reinsurance capacity for workers' compensation business, the company said.

The company's programme business segment revenues decreased $0.4 million to $3.4 million in the third quarter from $3.8 million in the third quarter of 2000. This decrease was due to reduced fee margins compared to previous years, the company said.

Insurance segment revenues earned by the company's US-based insurance carrier increased by $1.5 million to $8.0 million in the third quarter of 2001, compared to $6.5 million in the third quarter last year.

Stirling Cooke Brown Holdings Limited is a Bermuda holding company, which, through its subsidiaries, provides insurance services and products and is active primarily in the workers' compensation, occupational accident and health and casualty insurance markets.