Commercial Risk Reinsurance, the principal operating subsidiary of the Commercial Risk group, yesterday announced consolidated net earnings of $25,453,000 for the year ended December 31, 2000.

This represents a 12 percent decline on 1999 results but chairman and chief executive officer Graham Pewter said: "This was primarily attributable to the strengthening of reserves in respect of a small number of transactions. We are very satisfied with our performance.'' Total insurance volume reached $719,400,000, an increase of 16 percent over 1999. Gross written premiums also increased over 1999, by 43 percent, to $626,597,000 and net earned premiums rose 36 percent to $464,171,000.

Investment income of $62,851,000 was 49 percent up on last year due, the company said, to strong operating cash flow. Capital and surplus at December 31, 2000, was $250,016,000 after the company declared a dividend to its shareholder, Commercial Risk Partners, of $18,000,000.

Mr. Pewter said: " We are now reaping the benefits of our focused approach as we concentrate our activities on the delivery of three distinct offerings: loss frequency driven workers compensation, automobile and general liability capacity, weather risk management contracts offered by our capital markets division and integrated risk transfer products.

"In 2000, our casualty underwriting operations were once again the driving force behind revenues with strong demand for both prospective and retrospective transactions coming from a widening group of ceding companies and brokers.

"Additionally Commercial Risk Capital Markets, during its second year of operations, has established itself as a leader in the provision of index-based products that assist corporations to mitigate weather risk. Business is expanding rapidly and profitably and the division made a positive contribution to our results.

"We are looking for opportunities to diversify our activities into other complimentary fields, applying the same principles that underpin our current activities: unrivalled service, the development of proprietary analytical tools, and the recruitment of top quality professionals.'' Graham Pewter