million in 2000 -- compared to a net loss of $42 million for the same period the year before.

For the twelve months ended December 31, 2000, net loss per share for was $5.23 compared to net loss per share of $3.17 for the twelve months ended December 31, 1999.

For the fourth quarter of 2000, ESG Re reported a consolidated net loss of $7.9 million, or $0.67 per share, in line with expectations.

The company said given the actions taken in the third quarter, specifically significant reserve strengthening, past underwriting contributed no profits to this quarter on the related premium now being earned.

Investment income only partially covered normal operating expenses.

The company said reserves established in the third quarter are proving adequate in the company's efforts to "ring fence the issues of the past''.

Alasdair Davis, chief operating officer of ESG Re, said: "Since the third quarter of last year, ESG has made significant progress in executing its business plan centred on select reinsurance writings and partnership enterprises.

"We have added considerable strength to our team with the addition of Peter Taylor as chief reinsurance officer and Mark E. Oleksik as senior financial officer. In addition, we continue to take unrelenting action to close out our liabilities on the 1998 and 1999 underwriting years.''