anniversary by announcing profits rose by almost 50 percent during the first quarter of 2001.

Net income was $11,715,000 or $0.42 per share during the quarter, compared to $7,814,000 or $0.28 per share for the three months ended March 31, 2000.

The company, which is traded on the Nasdaq, reported net operating income grew 40 percent to $11,690,000 or $0.42 per share, as compared with $8,377,000 or $0.31 per share for the quarter ended March 31, 2000.

Total revenue for the quarter ended March 31, 2001 grew 24 percent to $79,762,000, compared with $64,272,000 for the quarter ended March 31, 2000.

The face amount of life insurance in force increased 58 percent to $83.2 billion, compared with $52.7 billion at March 31, 2000.

Underwriting margins for life and annuity lines were favourable, the company said.

Operating expenses were 3.3 percent of total revenue for the quarter ended March 31, 2001, as compared to 3.1 percent for the quarter ended March 31, 2000.

Lawrence S. Doyle, president and chief executive officer, said: "This quarter marks our three-year anniversary. Our earnings during the first three years have increased our capital base by $96 million to $456 million. Our acceptance in the marketplace continues to grow as a result of our strong performance and track record. During the first quarter, life premium income increased 54 percent over the same period last year. We are now ranked as the eleventh largest writer of new life reinsurance business in the U.S. for the year 2000.

"While market conditions remain competitive, we are well positioned to achieve our business plan objectives for the year.'' During the quarter the company paid its quarterly cash dividend of $0.05 per share. The dividend was paid on March 22, 2001 to shareholders of record on March 8, 2001.

At the April 26, 2001 meeting of the board of directors, a quarterly dividend of $0.05 per common share was declared, payable on May 31, 2001 to shareholders of record on May 17, 2001.

Its shares closed down 12 cents at $30.98 yesterday.