the first quarter dropped 19.6 percent to $24.2 million after the company realised a loss of $6.8 million on investments during the period ending March 31.

The investment loss offset gains in net operating income, which rose from $30.5 million in the first quarter of 1999 to $30.9 million in the same period this year.

Catastrophe reinsurer Renaissance Re also said premium pricing in the sector was improving but the market average was still inadequate.

"The growth in our operating earnings per share is consistent with our expectations, as the tightening cat market allows us to more fully deploy our capital,'' said RenaissanceRe chairman and chief executive James Stanard.

"Although pricing in the cat market continues to improve in many segments, the market average is still not adequate. RenaissanceRe's ability to construct a superior portfolio continues to be essential to our success.'' The company said after taking into account realised losses on investments of $6.8 million for the quarter, compared with realised losses of $0.5 million for the first quarter of 1999, net income for the quarter ended March 31, 2000 was $24.1 million or $1.24 per share, compared with $30.0 million or $1.41 per share for the first quarter of 1999.

Gross premiums written for the first quarter of 2000 were $160.5 million compared with $155.1 million for the same quarter of 1999. Gross premiums written for the reinsurance operations were $144.8 million for the quarter ended March 31, 2000, compared with $133.6 million for the same period of 1999.

Net premiums written for the first quarter of 2000 were $103.4 million compared with $116.3 million for the same quarter of 1999.

The company said the increase in ceded premiums relates primarily to timing differences on premiums ceded by the reinsurance operations and the cession of substantially all of the premiums written by the primary companies.

Net investment income, excluding realised and unrealised investment gains and losses, for the first quarter of 2000 was $18.5 million, compared with $13.1 million for the same period in 1999.