operate in the Bermuda market, recently reported half-year results in the black.

Profits were $7.5 million for the six months ending June 30, said Terra Nova (Bermuda) Holdings Ltd., the Bermuda-domiciled holding company of subsidiaries TNB and Terra Nova Insurance Company Ltd.

TNB was formed in December 1994 but while the latter is a 25-year-old London market insurer and reinsurer.

"The first six months' results were satisfactory in terms of operating profits and good in terms of asset growth with bond values recovering from the depressed levels that we recorded at the end of 1994,'' said TNB president Mr.

John Dwyer.

TNB unaudited premiums written for the six months were $18.5 million, of which $16.1 million arose from cessions from the UK company. Shareholders' funds at the Bermuda subsidiary rose to $74.3 million at June 30, 1995 from $55.4 million at the end of 1994. The increase was due to the retained $7.5 million profit and investment gains of $11.4 million, the company said.

"The years of 1994 and 1995 have been a period of significant development for Terra Nova.

"In addition to the corporate restructuring at the end of 1994, which involved the addition of important new investors to our group, we also successfully completed in June this year a $100 million public bond issue in the US,'' said TNB chairman Mr. William Bailey.

The UK subsidiary saw net income of $17.8 million, up 19.5 percent from the $14.9 million reported a year earlier while premiums written were $240.3 million compared to $234.1 million.

Shareholders' funds rose to $180.9 million from $135.6 million boosted by retained earnings of $7.8 million, investment gains of $27.5 million and $10 million of additional capital.

These are the first half-year figures for the two operating subsidiaries since the company restructured.