<PAGE> 1
================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1995.
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period ________ to ________ .
Commission file number 0-14737
TRENWICK GROUP INC.
(Exact name of registrant as specified in its charter)
Delaware 06-1152790
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
Metro Center
One Station Place
Stamford, Connecticut 06902
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (203) 353-5500
None
- - --------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES X No
---- ----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock.
<TABLE>
<CAPTION>
Class Outstanding at October 31, 1995
----- -------------------------------
<S> <C>
Common Stock, $.10 par value 6,495,371
</TABLE>
================================================================================
<PAGE> 2
TRENWICK GROUP INC.
INDEX
<TABLE>
<CAPTION>
Page
Number
------
<S> <C>
PART I. Financial Information
Consolidated Balance Sheet
September 30, 1995 and December 31, 1994 3
Consolidated Statement of Income
Nine Months Ended September 30, 1995 and 1994 4
Consolidated Statement of Changes in Stockholders' Equity
Nine Months Ended September 30, 1995 and 1994 5
Consolidated Statement of Cash Flows
Nine Months Ended September 30, 1995 and 1994 6
Notes to Consolidated Financial Statements 7-8
Management's Discussion and Analysis 9-12
of Financial Condition and Results
of Operations
PART II. Other Information
Item 6. Exhibits and Reports on Form 8-K 13
Signatures 14
</TABLE>
<PAGE> 3
TRENWICK GROUP INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<TABLE>
<CAPTION>
September 30, December 31,
------------- ------------
1995 1994
-------- --------
(dollars in thousands)
<S> <C> <C>
Assets
------
Fixed maturity investments available for sale at
fair value (amortized cost: $594,992 and $546,620) $609,910 $532,248
Equity securities available for sale at
fair value (cost $10,331 and $10,181) 12,654 9,752
Cash and cash equivalents 10,869 9,784
-------- --------
Total investments and cash 633,433 551,784
Accrued investment income 9,731 10,332
Receivables from ceding insurers 42,117 27,798
Reinsurance recoverable balances, net 91,473 87,972
Deferred policy acquisition costs 15,834 10,691
Net deferred income tax assets 17,041 28,855
Other assets 9,513 9,813
-------- --------
Total assets $819,142 $727,245
======== ========
Liabilities and Stockholders' Equity
------------------------------------
Liabilities:
Unpaid claims and claims expenses $424,981 $389,298
Unearned premium income 55,295 36,306
Convertible debentures 103,500 103,500
Other liabilities 9,051 9,928
-------- --------
Total liabilities 592,827 539,032
-------- --------
Stockholders' equity:
Preferred stock, $.10 par value,
1,000,000 shares authorized; none outstanding - -
Common stock, $.10 par value, 15,000,000 shares
authorized; 6,493,871 and 6,440,123 shares outstanding 649 644
Additional paid-in capital 87,963 86,491
Retained earnings 127,754 111,395
Net unrealized appreciation (depreciation) of
investments, net of income taxes 11,206 (9,621)
Deferred compensation under stock award plan (1,257) (696)
-------- --------
Total stockholders' equity 226,315 188,213
-------- --------
Total liabilities and stockholders' equity $819,142 $727,245
======== ========
</TABLE>
The accompanying notes are an integral part of these statements.
3
<PAGE> 4
TRENWICK GROUP INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- -----------------------
1995 1994 1995 1994
-------- -------- -------- --------
(in thousands except per share data)
<S> <C> <C> <C> <C>
Revenues:
Net premiums earned $43,200 $ 33,137 $131,362 $ 95,006
Net investment income 9,354 8,596 27,091 25,080
Net realized investment gains (losses) 131 - 281 (15)
-------- -------- -------- --------
Total revenues 52,685 41,733 158,734 120,071
-------- -------- -------- --------
Expenses:
Claims and claims expenses incurred 25,854 22,172 85,447 69,251
Policy acquisition costs 11,957 8,653 31,852 24,167
Underwriting expenses 3,219 2,497 9,023 7,870
Interest expense 1,622 1,623 4,873 4,850
-------- -------- -------- --------
Total expenses 42,652 34,945 131,195 106,138
-------- -------- -------- --------
Income before income taxes 10,033 6,788 27,539 13,933
Income taxes 2,077 386 5,739 277
-------- -------- -------- --------
Net income $ 7,956 $ 6,402 $ 21,800 $ 13,656
======== ======== ======== ========
PRIMARY EARNINGS PER SHARE $ 1.18 $ .96 $ 3.26 $ 2.04
======== ======== ======== ========
Weighted average shares outstanding 6,739 6,642 6,691 6,681
======== ======== ======== ========
FULLY DILUTED EARNINGS PER SHARE
(assuming conversion of convertible debentures as of
the date of issuance) $ 1.01 $ .85 $ 2.80 $ 1.91
======== ======== ======== ========
Weighted average shares outstanding 8,941 8,776 8,921 8,815
======== ======== ======== ========
Dividends per common share $ .28 $ .25 $ .84 $ .75
======== ======== ======== ========
</TABLE>
The accompanying notes are an integral part of these statements.
4
<PAGE> 5
TRENWICK GROUP INC.
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
(UNAUDITED)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
1995 1994 1995 1994
--------- --------- --------- ---------
(dollars in thousands)
<S> <C> <C> <C> <C>
Stockholders' equity, beginning of period $ 218,750 $ 187,717 $ 188,213 $ 206,763
Common stock, $.10 par value, and additional
paid-in capital:
Exercise of employer stock options
(13,000, 35,500 and 37,050 shares) 257 -- 504 643
Income tax benefit resulting from
excess compensation expenses allowable
for income tax purposes 93 -- 175 140
Restricted common stock awarded
(21,304 and 4,871 shares) -- -- 933 168
Restricted common stock awards cancelled
(2,359 shares) -- -- -- (76)
Common stock purchased and retired
(3,056 and 194,233 shares) -- -- (134) (6,590)
Retained earnings:
Net income 7,956 6,402 21,800 13,656
Cash dividends (1,818) (1,607) (5,442) (4,853)
Net unrealized appreciation (depreciation) of
investments available for sale:
Change in unrealized appreciation (depreciation) 1,411 (3,947) 32,041 (30,769)
Change in applicable deferred income taxes (494) 1,381 (11,214) 10,769
Deferred compensation under stock award plan:
Restricted common stock awarded -- -- (933) (168)
Restricted common stock awards cancelled -- -- -- 76
Compensation expense recognized 160 73 372 260
--------- --------- --------- ---------
Stockholders' equity, end of period $ 226,315 $ 190,019 $ 226,315 $ 190,019
========= ========= ========= =========
</TABLE>
The accompanying notes are an integral part of these statements.
5
<PAGE> 6
TRENWICK GROUP INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
------------------------
1995 1994
-------- -------
(in thousands)
<S> <C> <C>
Cash flows from operating activities:
Premiums collected $112,853 $84,067
Ceded premiums paid (6,337) (5,160)
Claims and claims expenses paid (67,037) (59,528)
Claims and claims expenses recovered 6,251 8,009
Underwriting expenses paid (8,304) (6,534)
-------- -------
Cash provided by underwriting activities 37,426 20,854
Net investment income received 29,216 25,893
Interest and other expenses paid (3,131) (3,125)
Income taxes paid (8,026) (1,925)
-------- -------
Cash provided by operating activities 55,485 41,697
-------- -------
Cash flows for investing activities:
Purchases of fixed maturity investments (126,863) (164,449)
Sales of fixed maturity investments 40,171 76,217
Maturities of fixed maturity investments 37,932 58,934
Purchases of equity securities (150) -
Additions to premises and equipment (418) (91)
-------- -------
Cash used for investing activities (49,328) (29,389)
-------- -------
Cash flows for financing activities:
Issuance of common stock 370 643
Repurchase of common stock - (6,590)
Dividends paid (5,442) (4,853)
-------- -------
Cash used for financing activities (5,072) (10,800)
-------- -------
Increase in cash and cash equivalents 1,085 1,508
Cash and cash equivalents, beginning of period 9,784 6,405
-------- -------
Cash and cash equivalents, end of period $ 10,869 $ 7,913
======== =======
</TABLE>
The accompanying notes are an integral part of these statements.
6
<PAGE> 7
TRENWICK GROUP INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation:
The interim consolidated financial statements include those of Trenwick
Group Inc. and its subsidiaries and have been prepared in conformity with
generally accepted accounting principles applied on a basis consistent with
prior periods.
The interim consolidated financial statements are unaudited; however, in
the opinion of management, the interim consolidated financial statements
include all adjustments, consisting only of normal recurring adjustments,
necessary for a fair statement of the results for the interim periods.
These interim statements should be read in conjunction with the 1994
audited financial statements and related notes.
2. Reinsurance:
Trenwick purchases reinsurance to reduce its exposure to catastrophe losses
and the frequency of large losses in all lines of business. Trenwick,
however, remains liable in the event that its retrocessionaires do not meet
their contractual obligations. The effects of reinsurance on premiums
written, premiums earned and claims and claims expenses incurred is as
follows (in thousands):
<TABLE>
<CAPTION>
Premiums Written
------------------------------------------------
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
1995 1994 1995 1994
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Assumed $ 54,988 $ 39,440 $ 162,920 $ 114,064
Ceded (4,533) (2,918) (12,542) (11,067)
--------- --------- --------- ---------
Net $ 50,455 $ 36,522 $ 150,378 $ 102,997
========= ========= ========= =========
</TABLE>
<TABLE>
<CAPTION>
Premiums Earned
------------------------------------------------
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
1995 1994 1995 1994
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Assumed $ 47,936 $ 36,164 $ 144,131 $ 106,307
Ceded (4,736) (3,027) (12,769) (11,301)
--------- --------- --------- ---------
Net $ 43,200 $ 33,137 $ 131,362 $ 95,006
========= ========= ========= =========
</TABLE>
7
<PAGE> 8
<TABLE>
<CAPTION>
Claims and Claims Expenses Incurred
------------------------------------------------
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
1995 1994 1995 1994
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Assumed $ 31,421 $ 26,500 $ 102,067 $ 89,453
Ceded (5,567) (4,328) (16,620) (20,202)
--------- --------- --------- ---------
Net $ 25,854 $ 22,172 $ 85,447 $ 69,251
========= ========= ========= =========
</TABLE>
3. Stockholders' Equity:
The Company currently has no authorization from its Board of Directors for
common stock purchases. At September 30, 1995, the Company has 6,493,871
shares outstanding.
4. Stock Options and Benefit Plans:
For the nine months ended September 30, 1995, Trenwick awarded key
employees an aggregate of 21,304 shares of common stock under the terms of
the 1989 Stock Plan. Of these shares, 4,654 were valued at $44.00 per share
(approximately $205,000) and vest over five years, and 16,650 were valued
at $43.75 per share (approximately $728,000) and vest over three years.
Trenwick is recognizing compensation expense determined by the value of the
shares, amortized over the applicable vesting period. During the nine-month
period, 3,056 shares were repurchased at $44.00 per share (aggregate
$134,000) in connection with the satisfaction of withholding taxes payable
upon the vesting of shares previously awarded under the plan.
For the nine months ended September 30, 1995, Trenwick awarded key
employees Performance Options, under the terms of the 1993 Stock Option
Plan, for an aggregate of 90,500 shares of common stock at an average
exercise price of $43.97 per share, and awarded non-employee Directors,
under the terms of the 1993 Stock Option Plan for Non-Employee Directors,
options for an aggregate of 6,000 shares of common stock at an average
exercise price of $44.54 per share.
8
<PAGE> 9
MANAGEMENT'S DISCUSSION
AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
OVERVIEW
Trenwick Group Inc. ("Trenwick") is a holding company whose principal
subsidiary, Trenwick America Reinsurance Corporation ("Trenwick America Re")
reinsures property and casualty risks written by U.S. insurance companies.
Substantially all of Trenwick America Re's business is produced by reinsurance
brokers. Trenwick America Re divides its business into three categories: treaty,
special program and facultative. In addition, under a strategic reinsurance
agreement with PXRE Reinsurance Company ("PXRE Re"), Trenwick America Re assumes
approximately 15% of PXRE Re's property business.
OPERATING RESULTS
Trenwick's consolidated net income was $8.0 million or $1.18 per share in the
third quarter of 1995 compared to $6.4 million or $.96 per share in the third
quarter of 1994. Consolidated net income was $21.8 million or $3.26 per share
for the nine months ended September 30, 1995 compared to $13.7 million or $2.04
per share for the same period in 1994. Fully diluted earnings per share were
$1.01 and $2.80 in the third quarter and for the nine months ended September 30,
1995, respectively, compared to $.85 and $1.91 for the same periods in 1994.
Consolidated net income for the nine months ended September 30, 1994 included
after-tax claims and other costs associated with the Southern California
earthquake of approximately $6.4 million.
Operating income (net income excluding after-tax realized investment gains and
losses) was as follows (in thousands, except per share data):
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
---------------------- ----------------------
1995 1994 1995 1994
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Operating income $ 7,871 $ 6,402 $ 21,617 $ 13,666
Per Share:
Primary $ 1.17 $ .96 $ 3.23 $ 2.05
Fully diluted $ 1.00 $ .85 $ 2.78 $ 1.91
</TABLE>
Realized after-tax investment gains in the third quarter and for the nine months
ended September 30, 1995 were $85,000 and $183,000 or approximately $.01 and
$.03 per share, respectively, compared to nominal realized after-tax investment
losses for the nine months ended September 30, 1994.
9
<PAGE> 10
PREMIUMS
Trenwick's net premiums written of $ 50.5 million for the third quarter 1995
represented a 38% increase over the same period in 1994. Net premiums written
for the nine months ended September 30, 1995 of $150.4 million represented an
increase of 46% compared to the same period in 1994. Trenwick's net premium
growth in the third quarter and for the nine months ended September 30, 1995
resulted from increases in its casualty business of 59% and 64%, respectively,
offset by decreases of 13% and 3% in its property business, for the respective
periods. The distribution of the Company's net premiums written was as follows
(in thousands):
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------------- --------------------------------
1995 1994 % Change 1995 1994 % Change
--------- --------- -------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
CASUALTY:
Treaty $ 23,667 $ 15,164 56% $ 75,093 $ 43,595 73%
Special Program 16,177 9,656 68 44,427 29,001 53
Facultative 1,333 1,091 22 4,471 3,062 46
--------- --------- --- --------- --------- ---
41,177 25,911 59 123,991 75,658 64
--------- --------- --- --------- --------- ---
PROPERTY:
Treaty 3,775 5,169 (27) 10,057 12,118 (17)
PXRE Re 5,503 5,442 1 16,330 15,221 7
--------- --------- --- --------- --------- ---
9,278 10,611 (13) 26,387 27,339 (3)
--------- --------- --- --------- --------- ---
Total $ 50,455 $ 36,522 38% $ 150,378 $ 102,997 46%
========= ========= === ========= ========= ===
</TABLE>
New casualty business increased 138% and 80% in the quarter and for the nine
months ended September 30, 1995 over the same periods in 1994. New casualty
business represented approximately 29% and 24% of total premium writings during
those periods. Increases in participations in renewal transactions and growth in
the original business written by several ceding companies ("continuing casualty
business") increased 34% and 58% in the quarter and for the nine months ended
September 30, 1995 over the same periods in 1994. Continuing casualty business
represented 52% and 58% of the total premium writings during these periods. The
Company's property business, representing 19% and 18% of total premium writings
for the quarter and nine months, declined as a result of the non-renewal of
certain national accounts. During 1995, the Company modified its process of
estimating premiums from ceding companies, resulting in an accrual for
unreported premiums written at September 30, 1995 of $15.6 million. These
estimated premiums did not materially affect the Company's earnings in 1995.
UNDERWRITING EXPERIENCE
The combined ratio is one means of measuring the profitability of a property and
casualty company. The combined ratio reflects underwriting experience, but does
not reflect income from investments or provisions for income taxes. A combined
ratio below 100% indicates profitable underwriting, and a combined ratio
exceeding 100% indicates unprofitable underwriting. Although a reinsurer may
have unprofitable underwriting results, the reinsurer may still be profitable
because of investment income earned on the accumulated invested assets.
10
<PAGE> 11
The following table sets forth Trenwick's combined ratios and the components
thereof calculated on a GAAP basis for the period indicated, together with
Trenwick America Re's combined ratio calculated on a statutory basis:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------- -------------------
1995 1994 1995 1994
---- ---- ---- ----
<S> <C> <C> <C> <C>
Claims and claims expense ratio 59.8% 66.9% 65.0% 72.9%
---- ----- ---- -----
Expense ratio:
Policy acquisition expense ratio 27.7 26.1 24.2 25.4
Underwriting expense ratio 7.5 7.5 6.9 8.3
---- ----- ---- -----
Total expense ratio 35.2% 33.6% 31.1% 33.7%
---- ----- ---- -----
Combined ratio (GAAP basis) 95.0% 100.5% 96.1% 106.6%
---- ----- ---- -----
Trenwick America Re
statutory combined ratio 93.3% 99.9% 95.6% 105.9%
---- ----- ---- -----
</TABLE>
For the three and nine months ended September 30, 1994, the company's claims
ratio included approximately 4 and 9 percentage points, respectively, associated
with claims arising from the Southern California earthquake. The Company does
not anticipate any material adverse impact from the recent hurricane activity
and has reduced to a nominal amount its estimate for claims associated with the
Kobe earthquake.
INVESTMENT INCOME
Net investment income of $9.4 million increased 9% in the third quarter of 1995
compared to $8.6 million for the same period in 1994. Net investment income of
$27.1 million increased 8% for the nine months ended September 30, 1995 compared
to $25.1 million for the nine months ended September 30, 1994. Pre-tax yields on
invested assets averaged 6.3% in 1995 compared to 6.5% in 1994.
The taxable and non-taxable components of the Company's net investment income
were as follows (in thousands):
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
--------------------- ----------------------
1995 1994 1995 1994
------ ------ ------- -------
<S> <C> <C> <C> <C>
Taxable $5,283 $4,435 $15,183 $12,585
Non-taxable 4,071 4,161 11,908 12,495
------ ------ ------- -------
$9,354 $8,596 $27,091 $25,080
====== ====== ======= =======
Net investment income, after-tax $7,334 $6,931 $21,309 $20,354
====== ====== ======= =======
</TABLE>
11
<PAGE> 12
LIQUIDITY AND CAPITAL RESOURCES
As of September 30, 1995, Trenwick's consolidated investments and cash totaled
$633.4 million, as compared to $551.8 million at December 31, 1994. At September
30, 1995, the fair value of the Company's fixed maturity portfolio exceeded
amortized cost of $595 million by $14.9 million. However, at December 31, 1994,
the amortized cost of the Company's fixed maturity portfolio exceeded the fair
value by $14.4 million. The fair value of the Company's equity securities
exceeded cost of $10.3 million by $2.3 million at September 30, 1995. At
December 31, 1994, the cost of the Company's equity securities exceeded fair
value by $.4 million.
As of September 30, 1995, Trenwick's consolidated stockholders' equity totaled
$226.3 million or $34.85 per share, as compared to $188.2 million or $29.23 per
share at December 31, 1994. The increase in consolidated stockholders' equity is
due to earnings in the period and an increase in the market value of the
Company's fixed maturity and equity investments since December 31, 1994. The
change in unrealized gain or loss, relating to the Company's fixed maturity and
equity investments, added $20.8 million, net of tax, or $3.21 per share to
stockholders' equity, primarily as a result of the change in interest rates
since December 31, 1994.
Statutory surplus of Trenwick America Re was $252.1 million as of September 30,
1995 compared to $236.1 million as of December 31, 1994.
Cash flow from operations of $55.5 million for the nine months ended September
30, 1995 increased approximately 33% compared to cash flow from operations of
$41.7 million for the nine months ended September 30, 1994. The increase in cash
flow from operations reflected the overall increase in premium writings
partially offset by an increase in taxes and net losses paid in 1995 compared to
1994.
Trenwick declared a third quarter dividend of $.28 per share in 1995, compared
to $.25 in the third quarter of 1994.
12
<PAGE> 13
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits
11.0 Computation of Earnings Per Share
27.0 Financial Data Schedule
b) Reports on Form 8-K
None
13
<PAGE> 14
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
TRENWICK GROUP INC.
----------------------------------------
(Registrant)
Date: November 13, 1995 /s/ JAMES F. BILLETT, JR.
----------------------------------------
James F. Billett, Jr.
Chairman, President and
Chief Executive Officer
Date: November 13, 1995 /s/ ALAN L. HUNTE
----------------------------------------
Alan L. Hunte
Vice President, Chief Financial Officer
and Treasurer
14
<PAGE> 1
TRENWICK GROUP INC.
Exhibit 11.0 -- COMPUTATION OF EARNINGS PER SHARE
(in thousands except per share amounts)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30, September 30,
------------------ -----------------
1995 1994 1995 1994
------- ------- ------- -------
<S> <C> <C> <C> <C>
PRIMARY
Average shares outstanding 6,489 6,428 6,470 6,466
Weighted average shares of common stock
equivalents associated with
stock options, net 250 214 221 215
------- ------- ------- -------
Total 6,739 6,642 6,691 6,681
======= ======= ======= =======
Net income $ 7,956 $ 6,402 $21,800 $13,656
======= ======= ======= =======
PER SHARE AMOUNT $ 1.18 $ .96 $ 3.26 $ 2.04
======= ======= ======= =======
FULLY DILUTED
Average shares outstanding 6,489 6,428 6,470 6,466
Weighted average shares of common stock
equivalents associated with
stock options, net 318 214 317 215
Assumed conversion of 6% convertible debentures 2,134 2,134 2,134 2,134
------- ------- ------- -------
Total 8,941 8,776 8,921 8,815
======= ======= ======= =======
Net income $ 7,956 $ 6,402 $21,800 $13,656
Add 6% convertible conversion debenture
interest net of federal income
tax effect 1,054 1,068 3,161 3,201
------- ------- ------- -------
Total $ 9,010 $ 7,470 $24,961 $16,857
======= ======= ======= =======
PER SHARE AMOUNT $ 1.01 $ .85 $ 2.80 $ 1.91
======= ======= ======= =======
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 7
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS CONTAINED IN THE FORM 10-Q FOR THE NINE MONTHS ENDED
SEPTEMBER 30, 1995 FOR TRENWICK GROUP, INC.
</LEGEND>
<MULTIPLIER> 1000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<EXCHANGE-RATE> 1
<DEBT-HELD-FOR-SALE> 609,910
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 12,654
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 622,564
<CASH> 10,869
<RECOVER-REINSURE> 91,473
<DEFERRED-ACQUISITION> 15,834
<TOTAL-ASSETS> 819,142
<POLICY-LOSSES> 424,981
<UNEARNED-PREMIUMS> 55,295
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 0
<NOTES-PAYABLE> 103,500
<COMMON> 649
0
0
<OTHER-SE> 225,666
<TOTAL-LIABILITY-AND-EQUITY> 819,142
131,362
<INVESTMENT-INCOME> 27,091
<INVESTMENT-GAINS> 281
<OTHER-INCOME> 0
<BENEFITS> 85,447
<UNDERWRITING-AMORTIZATION> 31,852
<UNDERWRITING-OTHER> 13,896
<INCOME-PRETAX> 27,539
<INCOME-TAX> 5,739
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 21,800
<EPS-PRIMARY> 3.26
<EPS-DILUTED> 2.80
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
</TABLE>
