Bermuda-based finite insurer and reinsurer Scandinavian Re yesterday posted solid 1998 results with net income up by 14.5 percent from $22.7 million to $26 million.

And net premiums earned for the year more than doubled to $85 million from $42.9 million in 1997.

But underwriting fees were stable at $5.3 million -- the same as the previous year. After general and administrative expenses, the underwriting profit dipped from $6.1 million to $5.4 million in 1998.

But investment income increased to $17.1 million from the previous year's $13.8 level and realised capital gains also went up from $2.8 million in 1997 to $3.4 in 1998. During the year the company rationalised its capital structure with the repurchase of the Swedish-Krona-denominated preference shares, a move the parent company offset by increasing the common shares and contributed surplus by $125 million.

Capital, surplus and retained earnings stood at $312.6 million on the final day of 1998. Scandinavian Re president and CEO Jens Juul said the company was proud of having produced a decade of consecutive annual underwriting profits.

"This record is an endorsement of our approach of selling conceptual solutions rather than off-the-shelf products. We have been able to fulfil our role of being a business partner with our clients.

"As I noted last year our industry continues to undergo unprecedented change, including global consolidation and increased capitalisation of various market participants. More recently, we have observed dislocations in the market for example in the workers compensation arena and geographically, reinsurers in Australia. It is gratifying to note that we have stayed our course throughout these turbulent times.'' Scandinavian Re's London headquarters vice president Henry Withinshaw said his office was continuing to develop contacts and to create awareness amongst Lloyd's brokers of the company's products and problem solving techniques.