Storms which raced through Europe at the end of last year have caused a locally-based reinsurer to experience record losses.

Bermuda-based reinsurer LaSalle Re Holdings Limited yesterday reported its results for the first quarter of fiscal 2000 -- October 1, 1999 to December 31, 1999.

Losses and loss expenses for the quarter were $46.6 million, or 153.5 percent of net premiums earned, compared with $30.6 million, or 87.1 percent of net premiums earned during the corresponding quarter of fiscal 1999. The main losses came as a result of the storms named Lothar and Martin which plagued northwestern Europe on December 26 and 27.

President and Chief Executive Officer Guy Hengesbaugh said: "This quarter was marked by record losses from storms which struck northwest Europe in December and which impacted LaSalle and the rest of the catastrophe sector. "As we reported on January 20, LaSalle expects net claims of some $29 million from Storms Lothar and Martin, which are estimated to have resulted in a total of more than $6 billion in insured losses industry wide,'' he continued.

"In addition, LaSalle expects net claims of about $7 million from a significant storm which hit Denmark in December.

"Excluding the impact of these storms, the company's first quarter earnings would have been in line with expected results for this financial period.'' Meanwhile the loss before minority interest for the quarter was $19.8 million compared to income before minority interest, including net realised gains on investments, of $6.9 million.

Assuming dilution, losses per share for the quarter were $1.06 compared with earnings per share at $0.25 for the same quarter in 1998. Gross premiums written for the quarter were $10.3 million compared with $11.8 million for the first quarter of fiscal 1999.

Net premiums earned for the quarter were $30.4 million compared with $35.1 million a year earlier. And net investment income in the quarter was $8.6 million, up from $8 million in the first quarter of the 1999 fiscal year.

Mr. Hengesbaugh noted that the extent of industry-wide losses from the storms could prompt further rate increases for catastrophe reinsurance. "We have already begun to see a recovery of rates in the reinsurance sector, and events such as these will likely add to this trend,'' he said.

LaSalle Re Holdings Limited, through its operating company, LaSalle Re Limited, writes specialist classes of reinsurance on a worldwide basis, including property catastrophe reinsurance. LaSalle Re Holdings Limited and Trenwick Group Inc. announced on December 19, 1999 that they had signed a definitive agreement for LaSalle and Trenwick to merge, with shareholders of both companies receiving shares in a new Bermuda holding company to be named Trenwick Group Ltd.

The transaction is expected to be complete in the second quarter of calendar year 2000.