TRENWICK GROUP LTD.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
AND COMPREHENSIVE INCOME - UNAUDITED
(Amounts expressed in thousands of United States dollars,
except per share data)
THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2002 AND 2001
 
 
                               Three Months           Nine Months
                           






 






 
                              2002       2001       2002       2001
                           ---------- ---------- ---------- ----------
 
REVENUES:
 
Net premiums earned         $194,823   $239,862   $738,108   $667,208
Net investment income         24,401     30,770     81,541     96,141
 
Net realized investment
 
 gains (losses)               (3,119)    (3,302)     2,295      7,828
Other income                   2,191      1,233      7,829      3,285
                           ---------- ---------- ---------- ----------
Total revenues               218,296    268,563    829,773    774,462
                           ---------- ---------- ---------- ----------
 
EXPENSES:
Claims and claims expenses
 
 incurred                    192,947    264,344    594,549    638,176
Policy acquisition costs      69,577     75,017    217,492    197,473
Underwriting expenses         20,122     21,352     63,810     56,892
 
General and administrative
 
 expenses                      6,005      3,845     13,981     15,122

Loss on sale of LaSalle's in-force reinsurance business before commission income on quota share 

 contract                          -          -      7,008          -
 
Interest expense and
 subsidiary preferred share
 
 dividends                     8,289      9,601     29,106     30,054
Foreign currency losses        3,805      1,397      4,965      2,932
                           ---------- ---------- ---------- ----------
Total expenses               300,745    375,556    930,911    940,649
                           ---------- ---------- ---------- ----------
 
Loss before income taxes
 and cumulative effect of
 change in accounting
 
 principle                   (82,449)  (106,993)  (101,138)  (166,187)
 
Applicable income taxes
 
 (benefit)                    54,463    (10,886)    44,894    (38,187)
                           ---------- ---------- ---------- ----------
 
Net loss before cumulative
 effect of change in
 
 accounting principle       (136,912)   (96,107)  (146,032)  (128,000)
 
Cumulative effect of change
 
 in accounting principle           -          -    (41,653)         -
                           ---------- ---------- ---------- ----------
Net loss                    (136,912)   (96,107)  (187,685)  (128,000)
 
Dividends on convertible
 
 preferred stock                 298          -        298          -
                           ---------- ---------- ---------- ----------
 
Net loss available to
 
 common shareholders       $(137,210)  $(96,107) $(187,983) $(128,000)
                           ========== ========== ========== ==========