as a Bermuda-based company.

Terra Nova (TNHL), which established its Bermuda holding company at the end of 1994 as part of a major restructuring of the previously London-based insurance company, had total net written premium of $139.8 million in the three months to March 31, it said.

Of that total, TNHL's 25-year-old London based Terra Nova Insurance Company contributed $125.8 million, up ten percent on the same period a year earlier, and Terra Nova (Bermuda) Ltd. added $1.2 million of new Bermuda business and $12.8 million from its participation in the UK firm's business, the company said.

Capital and surplus for the London company was $151.2 million for the London company and $62.3 million for the Bermuda operation.

"While the volume of business originated here in Bermuda during the first quarter is small due to out late start, we are satisfied with the flow of early submissions and the opportunities that we have seen since the end of the quarter,'' said Mr. John J. Dwyer, president of the newly created Bermuda company.

Chairman Mr. William O. Bailey said: "Our new structure provides Terra Nova with the flexibility to expand our participation into markets where profit opportunities exist. During our first quarter of operations under the new structure, we have seen improvements in the underwriting account as well as marked improvement in fixed income valuations.'' The company also said that for the 1994 year, it had operating earnings before realised investment gains of $36.8 million despite paying out $12.8 million on claims from the Northridge earthquake in Southern California.

Realised investment gains for the year were $13.8 million and shareholders' equity at the end of the year was $105.6 million. Shareholders equity to the end of March, 1995 was $132.4 million.