reinsurance firm that is concentrating on a property catastrophe book of business, was hit hard by losses incurred through exposure to the California earthquake. But the company is still optimistic about its performance and future.

Executive vice president and chief underwriter, Mr. Guy Hengesbaugh said: "We are pleased with our reception in the market place.'' Mr. Andrew Cook, chief financial officer added: "In spite of the losses over the California earthquake, we were still able to post a first quarter underwriting profit.

"We've written $87.3 million up to the end of the first quarter in premiums, and as of April 1 our in-force premiums are in excess of $100 million. Overall our book of business is 55 percent US-based.'' The company was incorporated in October, 1993, and commenced operations in November.

Losses paid to date over the earthquake have been minimal but significant loss payments are expected to begin during the second quarter. Initial estimates indicate a quake loss and loss expenses of $19.9 million.

The company does not anticipate having to make any material loss payments due to the winter storms in the US or the Alabama tornadoes.

In an unaudited statement, LaSalle Re posted a net income of $1.1 million, with retained earnings at the end of March at $169,370.

Net premiums earned were $22.5 million. Net investment income was $4.4 million.

The company entered into 11 proportional (quota share) treaties which contributed $38 million of gross written premiums and 232 excess of loss contracts with generated gross written premiums of $45.3 million.

The total assets of the company are $455.7 million with 82 percent kept in cash and marketable securities.

The loss ratio is 99.3 percent, expense ratio 15.3 percent for a combined ratio of 114.6 percent. All organisation costs were written off during the period ended December 31, 1993.