Bermuda-based Harrington International Insurance Ltd's profits have nearly tripled in 1999, despite no improvement in underwriting conditions, according to the company's annual report.

The company reported a net income of $22.8 million for the year end December 31,1999, compared to $7.7 million the year before.

And Harrington, which was started in 1995 and is pert of the Swiss Re New Markets, hopes to continue to grow in the future.

Chairman John Austin said: "Whilst I am pleased to report net income for 1999 of $22.8 million, the hoped for improvement in underwriting conditions has yet to materialise.'' He added that certain lines of business and some markets show signs of reduced competition primarily due to pay-outs for catastrophes last year and said Harrington had paid out $1.6 million.

At the year end the company had assets of $224.6 million and shareholders equity increased to $133.1 million.

The company had gross premiums written of $23.4 million ,down on last year's $24.8 million and more than half those written in the first six months recorded in 1995. Net loss ratio stood at 146 percent, compared to 102 percent the year before, net expense ratio at 9 percent and net combined ratio 155 percent, compared to 106 percent in 1998.

Total return on investments were reported at 9.3 percent, compared to 25.2 the year before. Mr. Austin said: "This performance has been achieved by a combination of strict underwriting controls, strong financial management and the dedicated support of our producers and clients, reinsurers, and staff.

"We recognise, however, that whilst Harrington has performed well in a competitive environment we have yet to fulfil the potential that latently exists for the mutual benefit of our clients and shareholders.

"With Swiss Re New markets (of which Harrington is a part) raising its profile in the Bermudian market, we feel confident that opportunities for our future development will occur.'' Shareholder equity in 1999 was up $10.1 million to $133.1 million, compared to $122 million in 1998. The book value per share was $190.15, up $14.50 from the year before.