A table of Bermuda insurance company stocks in Wednesday's Business section incorrectly had EXEL Ltd. closing at $38.375 on Tuesday. The company's stock closed at $42.375 on Tuesday.

Bermuda-based insurance company stocks have been battered by the recent falls on US stock exchanges, but an analyst said the declines also reflect weakness in premium pricing in the reinsurance markets.

The Dow Jones Industrial Index dropped a combined 297.11 points on Thursday and Monday and was up 25.57 points at 6611.05 at the close of trading yesterday.

Lehman Brothers equity analyst Peter Wade said last week's US interest rate hike -- which sparked the retreat on US stock markets -- was slightly to blame for Bermuda insurance company stock declines.

But he said that while insurance stocks are often interest rate sensitive, recent drops in Bermuda insurance stocks were more apt to be a reflection of property catastrophe reinsurance market concerns.

"Bermuda companies' (share prices) have held on relatively well,'' he said.

"Their relative performance is driven by fundamentals. Interest rates have something to do with it, but it is the fundamentals.'' Mr. Wade said that during the last month -- a period when fear of an interest rate hike was high -- Bermuda insurers outperformed Standard & Poor's composite index of 500 stocks by one percent.

Foor the year to date, however, Bermuda insurance company stocks have underperformed the market by two percent. In 1997, insurers in aggregate have outperformed the S&P 500 by four percent, Mr. Wade said.

Last Wednesday, the Federal Reserve Board policy makers, seeking to head off higher inflation brought on by a growing economy, raised the overnight bank lending rate a quarter point to 5.5 percent.

By Thursday's close, about two-thirds of Bermuda listed insurance company stocks were down. On Monday, seven Bermuda insurance stocks fell from the prior trading day's close while one was unchanged and one gained.

On Thursday, the Dow Jones fell 140.11 points and the S&P fell 16.62 points.

On Monday, the Dow Jones fell 157.11 points while the S&P 500 was down 16.76 points.

Mr. Wade also said Mid Ocean Ltd.'s stock price decline after recently released first quarter results could signal declines for other Bermuda property cats.

Mid Ocean is the first of the Bermuda insurers to release opening quarter results and is a good indicator of renewals, he said.

For the quarter ended January 31, Mid Ocean made $52.0 million, or $1.43 a share, compared to $57.8 million, or $1.57 a share, in the same quarter a year earlier. Per share income was below analysts' estimates by six cents, Mr. Wade said.

The company's first quarter results were released on March 7. Its share price has fallen from $49.625 on March 6 to close at $46 by March 11.

BERMUDA INSURANCE STOCKS How Bermuda-based insurance companies traded on US stock exchanges performed between the close of trading on Wednesday and yesterday's close.

Company Wednesday Thursday Monday Tuesday Tuesday close change change change close ACE 63.75 -.25 .50 -.375 63.625 XL 42.375 .50 -.625 .125 38.375 GCR 22.625 .375 -.125 -.375 22.50 IPC 24 unch .375 .375 24.75 LaSalle Re 28 .75 unch .25 29 Mid Ocean 48.25 -.375 -.125 -.50 47.25 MRM 36.125 -.125 .25 .625 36.875 PartnerRe 35.75 -.25 -.125 unch 35.375 Renaissance 37.375 -.25 -.125 -.375 36.65 Sphere Drake 9.75 -.125 -.125 -.125 9.375 Terra Nova 20.125 -.25 -.375 unch 19.50