third of its profit in its net underwriting income in the nine months ended September 30, 1999.

But the company reported a 5.5 percent increase in its net income for the nine months ended September 30, 1999, despite the possible impact on its business of the recent tax case lost by its biggest customer, United Parcel Service.

While the unaudited net income was $231.8 million compared to $219.1 million last year, third quarter losses were up on last year.

The net loss in the third quarter this year was $46.7 million compared to $39.1 million in the same period in 1998.

Net underwriting income was down a third to $129.7 million compared to the corresponding nine months in 1998, when it stood at 192.5 million.

At the time of the collection of the third quarter results, the company's total assets were $4.8 billion and members' equity was $2.6 million.

Scott Davis, OPL President and Chief Executive Officer said: "Our results year to date are indicative of reinsurance results as a whole and also reflect the volatility experienced in the investment markets.'' He added: "The decrease in profitability is primarily attributed to the continued downward pressure on premium rates and losses incurred on two programmes in our marine and workers' compensation lines of business.'' The company incurred a loss of $59.4 million in the third quarter for its reinsurance investments.