year to December 31, 1995, with shareholders' equity growing 75 percent to $1.1 billion.

Declaring net income of $200.8 million for the year, the company's total assets grew by a half billion dollars, or 15 percent, to $3.9 billion. Cash and invested assets rose $400 million to $3.2 billion.

Centre Re's annual report states: "In raw numerical terms, premium written, assets, capital and surplus, and net income all increased in 1995.

"Centre Re's financial results continued their upward trend, showing growth and profits in each year of operation since our inception in 1988.

"In terms of market presence, scope, quality of business written, and new relationships created, we feel the year was unprecedented.'' The company's net income and surplus are affected by changes in interest rates. Falling interest rates last year resulted in unrealised investment gains of $124.9 million, compared to unrealised losses of $148.4 million in 1994 when interest rates were rising.

Net premiums earned in 1995 were $637.5 million, a 27 percent increase over 1994 figures of $502.9 million. Last year the company wrote a staggering $1.2 billion in underwriting year premium, an increase of 6.6 percent over the previous year.

Centre Re, which writes multi-year contracts, records the total amount of premium dollars written on all contracts bound in a particular year. They have written a total of $5.4 billion in premium over the last eight years.

Net investment income rose from $159.1 million to $176.8 million.

The annual report said the company does not consider net income to be the best way to evaluate its bottom line, saying core income, which is net income, less realised gains and losses, is more valid.

Core income in 1995 was $162.8 million, after adjusting for realised gains of $38 million.

The company is expanding its non-US business, now about a third of overall volume.