million to $3.9 million or $0.33 per share as a result of a new business plan and better control on underwriting.

An underwriting loss of $1.6 million and operating expenses of $6.7 million offset investment and other income of $4.4 million. An underwriting profit of $1.3 million was posted in the quarter in respect of the 2001 underwriting year reflecting primarily the growth in the partnership enterprise segment of the business.

Over 85 percent of the premium earned in the first quarter came from business written during the 1999 and 2000 underwriting years prior to the implementation of centralised underwriting controls.

This business contributed an underwriting loss of $2.9 million in the quarter of which $2.2 million is represented by the cost to exit certain books that automatically would have renewed. Rate increases being effected on year 2001 written premium had little impact on first quarter results but are expected to contribute significantly more in ensuing quarters.

Alasdair Davis, chief executive officer, said: "We continue to make significant progress executing our business plan centred on select reinsurance writings and the partnership enterprises. That selectivity in underwriting is producing a profitable book of business for the 2001 underwriting year. In addition we are pleased with the growth in our partnership enterprise segment and are developing plans to expand this segment further into the European market.

"The message is one of focused attention to our business plan. Our key markets continue to perform well and represent our best opportunity to return to overall profitability in the later part of this year. Furthermore we continue to take action to close out the liabilities from the past underwriting years.'' For the three months ended March 31, 2001, the Company posted a net loss of $3.9 million, compared to a net loss of $10.2 million for the first quarter of 2000 and a net loss of $7.9 million for the fourth quarter of 2000. The net loss per share for the three months ended March 31, 2001 was $0.33 compared to a net loss per share of $0.88 for the first quarter of 2000 and a net loss per share of $0.67 for the fourth quarter of 2000. Included in last year's first quarter results was a loss from discontinued operations of $2.9 million or $0.25 per share representing the results from the divested non-core health care operations.

The net operating loss for the first quarter this year, which excludes realised investment gains, was $0.39 per share, down from $0.51 a year ago.