The Bermuda insurance industry has continued its expansion in 1998 with a moderate growth of five percent, despite a soft market.

New figures released yesterday by the Registrar of Companies show gross premiums written have increased from $25.4 billion in 1997 to $26.6 billion in 1998.

Net premiums written rose four percent from $20.4 billion to $21.2 billion during the same period.

Total insurance assets were four percent higher at $116.4 billion, compared to $111.8 billion the year before, while capital and surplus climbed six percent from $48.4 billion to $51.2 billion.

Insurers in Bermuda have continued to underwrite conservatively, with the new figures showing an industry-wide premium to capital and surplus ratio of 0.41 to 1.

Chairman of the Insurance Advisory Committee, Robert D. Steinhoff, said: "Bermuda insurers continue to grow at a modest rate, reflecting the caution being exercised by the industry in a soft market.

"Capital and surplus exceeds the $50 billion mark with a growth of six percent, representing a premium to capital and surplus ratio of 0.41 to 1, demonstrating the security of the Bermuda market''.

Capital and surplus for captives, both class 1 and 2, reflected a small decline of four percent to $17.3 billion.

Net premiums for those companies declined by two percent, as more companies took advantage of the preferential premium rate available in the commercial market in-stead of using their own captives.