increase in net income of 25 percent for the quarter ended September 30, 2000, after an increase in life premiums boosted profits.

The independent life and annuity company, which operates out of Cumberland House on Victoria Street reported net income as $10.9 million or $0.40 per share for the third quarter this year, compared to $8.715 million for the same period the year before.

The net operating income, excluding realised gains and losses on investments, stood at $11.6 million for the period this year, compared to $9.5 million the year before.

Total revenue for the quarter ended September 30 grew 69 percent from $41.1 million in the third quarter last year to $69.3 million in 2000.

"We continued to make very good progress in expanding our insurance customer base during the quarter,'' said Lawrence Doyle, president and chief executive officer of the company.

"We now have over 30 major clients that presently purchase reinsurance from our company. Our life premiums increased by 87 percent over the same period last year. Our mortality experience came in as an expected overall mix of business now provides increased stability of earnings.'' He added that the company expect its customer base to continue to accelerate, stating that many businesses preferred to do business with an independent public company.

Mr. Doyle added: "Annuity & Life Re is one of a few independent reinsurers specialising in life and annuity reinsurance.'' The face amount of life insurance in force rose 68 percent to $61.4 billion, compared to $36.6 billion in the same period in 1999.

Underwriting margins for life and annuity lines were favourable, the company said. Operating expenses were 3.3 percent of total revenue in both years, including the additional expenses of a new US subsidiary. During the quarter the company paid its quarterly cash dividend of 4 cents a share on September 7.

CHART Annuity & Life Re