cent to $111.8 million in the fiscal second quarter ended March 31.

ACE, which agreed to acquire CIGNA Corp.'s property-casualty insurance business earlier this year, said operating income was 57 cents a share, compared to $102.3 million, or 56 cents a share, in the same period last year.

Net income, which includes net realised investment gains, was $129 million, or 65 cents a share, in the fiscal second quarter compared with $247.9 million or $1.37 a share in the same period 1997.

Net realised gains fell to $17.2 million in the quarter compared with $145.6 million in the year-ago quarter.

ACE, which provides liability insurance, insurance for satellites, catastrophe insurance, said net premiums written rose about 49 per cent to $340.7 million compared with $228.6 million in 1997.

Chairman, president and chief executive officer Brian Duperreault said the growth in premium volume and earnings per share was achieved in the course of building a diversified company and during difficult market conditions.

ACE said it expects to complete the acquisition of the CIGNA business by July 1.

Gross premiums written during the quarter increased by 65.4 per cent to $435.5 million compared with $263.3 million. The company had net premiums of $340.7 million, and net premiums earned of $285.3 million, a gain of 28.8 per cent.

At March 31 ACE had about $8.9 billion in assets and about $4 billion in shareholders' equity.