its common share dividend policy in the 2000 fiscal year, it said yesterday.

And the company has negotiated a quota share reinsurance arrangement with Chicago-based insurer CNA, it was revealed.

Effective from October 1 this year LaSalle Re will drop its formula driven dividend policy which pays out 50 to 60 percent of the prior year's net income.

Instead it will move to a regular quarterly dividend declared by the board.

LaSalle Re chairman, president and chief executive officer Victor Blake said the new dividend policy was in line with peer companies and was designed to enhance share value.

He said the new quota share reinsurance arrangement was effective April 1 this year.

Under the agreement CNA is to assume a portion of LaSalle's current catastrophe exposure in certain peak zones.

It is expected that his programme will result in $4.4 million of additional ceded reinsurance premium for the 1999 fiscal year, he said.

"The combination of these two initiatives will enhance LaSalle's capital and surplus position and will increase our strategic options.

"It is a more efficient alternative to raising capital through a preferred share offering, which had been explored and will not now be required.'' LaSalle Re Holdings Limited, through its operating company LaSalle Re Limited, writes specialist classes of reinsurance, including property catastrophe, on a worldwide basis.