income from $187 million in 1993 to $108 million last year.

The firm said the difference was a result of a one time, May 1993 gain of $57 million on the sale of Zurich Reinsurance Centre Holdings Inc. stock and realising capital gains that year of $142 million, compared with the reported realised capital losses of $62 million in 1994.

Total net premium written for the year was up five percent to $503 million from $479 million in 1993. Total assets for the company rose $100 million to $2.4 billion.

Total capital and surplus for the company was $614 million at year's end, down from $856 million in 1993, reflecting a reorganisation of the Centre Re companies in early 1994 under one umbrella company, Zurich Centre Investments Ltd. (ZCI).

As part of the reorganisation, Centre Re's majority interest in ZRC was paid as a dividend valued at $312 million to ZCI.

President and CEO of Centre Reinsurance Companies, Mr. Michael Palm, said: "The growth of Centre Re's core business continues to surpass ever-increasing expectations. It is our opinion that the volume of business bound this year will produce more ultimate profit than business bound in any prior period.

"This growth stems from our attracting new business and expanding existing relationships. Centre Re continues to strengthen its role as a market leader in custom-designed, innovative insurance and reinsurance solutions. As reinsurance buyers and risk managers look for cost effective risk management alternatives, the demand for our products will increase.''