of operations with a $59.1-million profit, despite difficult bond markets and the Northridge earthquake.

LaSalle Re had $134.4 million in written premiums for the year ending December 31. The company has announced a $30-million dividend payment to its shareholders.

Chairman and CEO, Mr. Victor Blake, said: "Given that this was the year of the Northridge California earthquake, our combined ratio for the year of 62.8 percent seems entirely satisfactory.

"Once the dividend payment has been made, we will be adding $29.1 million in retained profits to our capital and surplus. This gives us $420 million in total shareholders equity, helping to support future growth and maintain a strong security ratio relative to writings.

"We anticipate premium income of around $200 million in 1995.'' The 1994 results represent a 15.88 percent return on equity -- achieved, said Mr. Blake, in the face of difficult bond markets and the second largest natural insured catastrophe in history.

The company has in force premium of $176 million, representing a well balanced portfolio diversified by region and client size.

The Kobe earthquake is reserved at $11 million, reflecting the firm's belief that it will prove a lesser insured loss than Northridge.

Mr. Blake said that the company will work hard to maintain its excellent geographical spread of approximately 50/50 between the US market and the rest of the world.

A statement on LaSalle Re's results added: "The major markets have maintained discipline to date which has had a stabilising effect, and Kobe was a timely reminder of the unpredictability of natural disasters.

"Rates are likely to reflect individual experience to a greater extent in 1995 than in 1994, which is preferable to a general turndown.

"LaSalle's strategy is to seek opportunities to increase its multi-line writings. Marine, aviation, casualty clash and risk excess are all likely growth areas. We believe our willingness to diversify our portfolio makes us a more attractive partner to brokers and clients, as does our receptiveness to creative ideas.'' LaSalle Re was formed in October 1993, by the Aon Corporation, CNA Insurance companies and Lazard Freres & Co. affiliate, Corporate Partners.