Harrington International Insurance Ltd. will try to achieve a balanced risk portfolio of the largest worldwide corporations in the years ahead, according to president and chief executive officer, Hans Hefti.

Mr. Hefti said Harrington will continue to offer substantial per risk and catastrophe covers for its client base.

The joint venture between Swiss Re and the Winterthur group has announced a net income of $321,321 for the start up six months to December 31, 1995.

For the half year period, gross premiums written were $58.6 million, of which property business accounted for $54.2 million, while marine business represented the other $4.4 million.

Net premiums written were $24.1 million, with property business contributing $23.1 million, and marine business one million dollars.

Gross premiums earned amounted to $37 million, while net premiums earned amounted to $2.6 million during the period.

Gross losses incurred amounted to $16.4 million, a gross loss ratio of 44.3 percent. Two losses led to pay outs that exceeded $2.5 million, the largest being the $3.6 million loss at a paper manufacturing plant in Finland. No significant natural catastrophe losses occurred during the period.

A net underwriting income of $700,000 was achieved before administrative expenses ($2.4 million for incorporation and development costs which are being amortised over three and 1.5 years, respectively) led to a $1.7-million net underwriting loss. That, together with investment income of $1.9 million, led to the modest $321,321-profit for the period.

Harrington was formed as a privately held underwriter of property reinsurance for the world's largest industrial, commercial and service companies and their captives.

Mr. Hefti said, "Harrington is the response to long-term structural changes in the market and a shift in the buying habits of the corporate world. It offers underwriting expertise coupled with improved pricing transparency and minimal risk transfer costs to meet corporate client needs.

"The significant per risk and catastrophe capacity offered by Harrington helps ease the capacity shortage for sharply escalating exposures which certain industrial groups are facing.

"Corporate clients in the United States, and increasingly in Europe, have welcomed the new arrangement and have placed greater emphasis on the large blocks of capacity which can be complemented by the services of Harrington's founders.'' The company has provided customised solutions for 45 clients headquartered in Europe and the US. A sophisticated underwriting process is used because of the high severity of the exposures inherent in their insureds.

The average premium ceded to Harrington of approximately a million dollars per client reflects the demanding process.

Mr. Hefti said, "Clients and their captives belonging to certain industry groups, such as oil and petrochemicals, telecommunication and mining, after a spell of shortage of capacity, now have the possibility to select from various bidders and alliances of carriers.

"It is increasingly evident that stability, professional capabilities, and long-term commitment are important selection criteria, which ideally position Harrington and its founding companies. Our target market comprises multinational corporations with global operations which utilise captives and similar arrangements more and more for alternative risk financing mechanisms.

"Harrington will address this client base with imagination and product design so as to meet their highly volatile risk transfer needs.''