$18.2 million for the third quarter ended September 30, an increase of 12.9 percent over the same period last year.

For the nine month period Terra Nova had operating earnings of $52.3 million, or $2 per diluted share, up 14.9 percent from the same period last year.

During the third quarter 1998 net income, including net realised investment gains, increased four percent to $19.8 million. Net income for the first nine months was $64.8 million, up 20.8 percent compared with the first nine months of 1997. The figure for the nine month net income does not include the extraordinary charge of a debt refinancing in the second quarter.

"I am pleased that Terra Nova has performed well given the recent large loss activity in the market, with another quarter of underwriting profit and strong growth in both premiums and earnings,'' company chairman John Dwyer stated in a press release. "The loss associated with Hurricane Georges of approximately $7.5 million was covered within the monthly large loss provision which the company maintains in anticipation of such events.'' Gross written premiums for the third quarter were $125.6 million, up 25.1 percent compared with the same period last year. Gross written premiums for the nine months were $593.4 million, up 37.3 percent from the same period 1997.

Mr. Dwyer said the increase of $161.3 million in gross written premiums resulted primarily from greater participation in the company's Octavian syndicates at Lloyds, from orphan syndicates, and from Corifrance. The company bought Corifrance in September 1997.

He said the company made a decision earlier this year to lower equity holdings and maintain holdings of high quality bonds. The decision helped the company during the recent turmoil in the financial markets. Net investment income was $23.3 million for the third quarter, 8.3 percent over the same period last year. Net investment income for the nine months was $69.5 million, an increase of 11.2 percent.

The company also took advantage of low prices in the equity market in October and repurchased 128,200 shares. Since the stock buy back was announced in May 1997, the company has repurchased 628,200 shares for about $13.3 million.

As at September 30 the company had total assets of $2.5 billion compared to $2.2 billion at year end 1997. Shareholders' equity was $558.8 million at September 30, up 16 percent from year end 1997. Book value per share, after deducting for second quarter non-operating charge of 45 cents, increased 15.6 percent to $21.92 at September 30.