Bermuda-based property catastrophe reinsurer LaSalle Re has declared second quarter net income of $32.7 million, about $1.4 million higher than the same period a year ago.

Gross premiums written were down from $132.6 million to $109.4 million.

Net premiums earned were also down from $53.6 million to $41.4 million.

Net investment income rose from $6.4 million to $8.1 million, as a result of a larger investment base and an increase in investment yields.

Losses and loss expenses were $6.9 million (16 percent of earned premiums), compared with $18.4 million (34.2 percent) for the same three months last year.

The combined ratio for the quarter was 36.93 percent, compared to 52.73 for the same period in 1996.

First half year results for the six months to March 31 are the same as the year before at $60.7 million, while gross premiums written were down from $145.2 million to $114.6 million.

Net investment income for the two quarter period improved 29.4 percent to $16.3 million from $12.6 million.

The loss ratio for the six month period was 20.97, down from 33.21 in the comparative period.

The combined ratio improved from 51.52 percent to 43.24 percent. Chairman, president and CEO Victor H. Blake, said, "These results demonstrate our ability to obtain a superior financial performance without increasing premium volume. The maintenance of our disciplined approach through all cycles has proven its value.'' The company completed a $75-million offering of Series A preferred shares, with proceeds, together with additional cash, used to purchase $100 million of common shares in a tender offer.

The company said the preferred share offering was completed during the quarter, while the tender offer for repurchase closed after the quarter and did not affect the quarterly results.

The company will use a further $25 million to repurchase shares during the year to enhance shareholder value and provide continued security to clients.

Mr. Blake said, "Further, in order to reduce earnings volatility, protect our capital base and support our dividend policy, we purchased a multi-year excess of loss reinsurance programme, effective January 1.'' The company began the quarter underwriting at Lloyd's of London through three syndicates, that yielded $5.8 million in gross premiums written.

On April 11, common and preferred shares began trading on the New York Stock Exchange.