The company's operating income for the quarter ended March 31 came to $26.4 million, a 32.5 percent decrease from the $39.1 million reported for the same period last year. Earnings per share were 64 cents, an 11.1 percent decrease from the 72 cents reported last year.

Converium reported gross premiums written of $1.2 billion for the first quarter, a 34.3 percent increase over the $941.2 million reported for the first quarter 2002.

Net premiums written during the quarter were nearly $1.2 billion, a 31.8 percent increase over the $898.9 million reported during the first quarter last year.

First-quarter non-life combined ratio came to 98.3 compared with 102.4 reported in the same period of 2002.

Converium's first-quarter results were shaped by the continuing strong performance in non-life underwriting, the disappointing result of Converium Life, and current conditions in capital markets, particularly the highly volatile global equity markets, said the Zug, Switzerland-based company in a statement.

While no material net developments had occurred for prior years' reserves on the non-life side, Converium Life's reserves were increased by $12.5 million due to guaranteed minimum death benefit contracts.

In addition, the company said that Converium Life had adverse development of $3.7 million on certain U.S. special risk business, which all acted to bring a segment loss of $17.3 million during the first quarter 2003.

Conditions in capital markets and low interest rates resulted in first-quarter "impairments of $15.8 million, and a reduction of the average annualized total investment income yield (pre-tax) by 2.5 percentage points to 2.9 percent," Converium said.