SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549
                                    --------

                                    FORM 10-Q

                                    --------

(X)  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934.
     For the quarterly period ended March 31, 2001.

( )  TRANSITION  REPORT  PURSUANT  TO SECTION  13 OR 15(d) OF THE  SECURITIES
     EXCHANGE ACT OF 1934
     For the transition period from  ____________  to ___________.

                         Commission file number 1-16089

                               TRENWICK GROUP LTD.
             (Exact name of registrant as specified in its charter)


         Bermuda                                                 98-0232340
(State or other jurisdiction of                               (I.R.S. Employer
incorporation or organization)                               Identification No.)

                     Continental Building, 25 Church Street
                             Hamilton HM12, Bermuda
               (Address of principal executive offices) (zip code)

                                    --------

Registrant's telephone number, including area code: 441-292-4985

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 as of the latest practicable date.

                                                            Shares Outstanding
Description of Class                                        as of May 15, 2001
--------------------                                        ------------------
Common Shares - $.10 par value                                  36,849,675


<PAGE>


                               TRENWICK GROUP LTD.
                               INDEX TO FORM 10-Q

                         PART I - FINANCIAL INFORMATION

                                                                            Page
ITEM 1. Unaudited Consolidated Financial Statements

        Consolidated Balance Sheet
        March 31, 2001 and December 31, 2000 .................................1

        Consolidated Statement of Operations and Comprehensive Income
        Three Months ended March 31, 2001 and 2000 ...........................2

        Consolidated Statement of Cash Flows
        Three Months ended March 31, 2001 and 2000 ...........................3

        Consolidated Statement of Changes in Common Shareholders' Equity
        Three Months ended March 31, 2001 and 2000 ...........................4

        Notes to Unaudited Consolidated Financial Statements .................5


ITEM 2. Management's  Discussion and Analysis of Financial Condition
        and Results of Operations ............................................8

                           PART II - OTHER INFORMATION

ITEM 1. Legal proceedings ...................................................16

ITEM 2. Changes in Securities and Use of Proceeds ...........................16

ITEM 3. Defaults Upon Senior Securities .....................................16

ITEM 4. Submission of Matters to a Vote of Security Holders .................16

ITEM 5. Other Information ...................................................16

ITEM 6. Exhibits and Reports on Form 8-K ....................................16

Signatures ..................................................................17



<PAGE>


                               Trenwick Group Ltd.
                           Consolidated Balance Sheet
        (Amounts expressed in thousands of United States dollars, except
                           share and per share data)
                      March 31, 2001 and December 31, 2000

<TABLE>
<CAPTION>
                                                           (Unaudited)
                                                               2001           2000
                                                           -----------    -----------
<S>                                                        <C>            <C>
ASSETS
Debt securities available for sale, at fair value          $ 1,835,863    $ 1,813,678
Equity securities at fair value                                 44,010        115,901
Cash and cash equivalents                                      335,130        311,001
Accrued investment income                                       30,850         38,171
Premiums receivable                                            512,906        473,245
Reinsurance recoverable balances, net                          988,146        932,051
Prepaid reinsurance premiums                                   156,916        147,399
Deferred policy acquisition costs                              110,231        100,423
Deposits                                                        21,680         48,969
Net deferred income taxes                                      104,241        104,889
Other assets                                                   158,910        134,325
                                                           -----------    -----------
Total assets                                               $ 4,298,883    $ 4,220,052
                                                           ===========    ===========
LIABILITIES
Unpaid claims and claims expenses                          $ 2,416,184    $ 2,408,926
Unearned premium income                                        543,356        496,338
Reinsurance balances payable                                   146,245        133,160
Indebtedness                                                   283,141        286,805
Other liabilities                                               95,231         90,866
                                                           -----------    -----------
Total liabilities                                            3,484,157      3,416,095
                                                           -----------    -----------
MINORITY INTEREST
Mandatorily redeemable preferred capital securities
  of subsidiary trust holding solely junior subordinated
   debentures of U.S. subsidiary                                68,466         76,770
Preferred shares of Bermuda subsidiary                          75,000         75,000
                                                           -----------    -----------
Total minority interest                                        143,466        151,770
                                                           -----------    -----------
COMMON SHAREHOLDERS' EQUITY
Common shares, $0.10 par value, 36,845,115 and
   36,665,103 shares issued and outstanding                      3,685          3,667
Additional paid in capital                                     578,335        575,401
Deferred compensation under share award plans                   (5,927)        (2,660)
Retained earnings                                               75,925         58,485
Accumulated other comprehensive income (loss)                   19,242         17,294
                                                           -----------    -----------
Total common shareholders' equity                              671,260        652,187
                                                           -----------    -----------
Total liabilities, minority interest and common
   shareholders' equity                                    $ 4,298,883    $ 4,220,052
                                                           ===========    ===========
</TABLE>

The accompanying notes are an integral part of these statements.

                                      -1-

<PAGE>


                               Trenwick Group Ltd.
    Consolidated Statement of Operations and Comprehensive Income (Unaudited)
            (Amounts expressed in thousands of United States dollars,
                             except per share data)
                   Three Months Ended March 31, 2001 and 2000

<TABLE>
<CAPTION>
                                                                      2001         2000
                                                                    ---------    --------
<S>                                                                 <C>          <C>
REVENUES
Net premiums earned                                                 $ 201,676    $ 27,212
Net investment income                                                  32,184       8,936
Net realized investment gains (losses)                                  8,859      (2,224)
Other income                                                              843          --
                                                                    ---------    --------
Total revenues                                                        243,562      33,924
                                                                    ---------    --------
EXPENSES
Claims and claims expenses incurred                                   140,248      43,546
Policy acquisition costs                                               59,206       4,510
Underwriting expenses                                                  16,324       3,766
General and administrative expenses                                     3,889         452
Interest expense and dividends on preferred stock of subsidiaries       7,472         305
Foreign currency losses (gains)                                         1,067        (170)
                                                                    ---------    --------
Total expenses                                                        228,206      52,409
                                                                    ---------    --------
Income (loss) before other minority interest and income taxes          15,356     (18,485)
Other minority interest in net income (loss) of subsidiary                 --      (4,676)
                                                                    ---------    --------
Income (loss) before income taxes                                      15,356     (13,809)
Applicable income taxes (benefit)                                      (3,557)         --
                                                                    ---------    --------
Net income (loss)                                                      18,913     (13,809)
Dividends on preferred shares                                              --       1,640
                                                                    ---------    --------
Net income (loss) available to common shareholders                  $  18,913    $(15,449)
                                                                    =========    ========
EARNINGS PER SHARE
Basic earnings (loss) per common share                              $    0.52    $  (0.99)
                                                                    =========    ========
Diluted earnings (loss) per common share                            $    0.51    $  (0.99)
                                                                    =========    ========
DIVIDENDS PER COMMON SHARE                                          $    0.04          --
                                                                    =========    ========
COMPREHENSIVE INCOME (LOSS)
Net income (loss)                                                   $  18,913    $(13,809)
                                                                    ---------    --------
Other comprehensive income:
    Net unrealized investment gains                                     7,225         934
   Foreign currency translation adjustments                            (5,277)         --
                                                                    ---------    --------
   Total other comprehensive income                                     1,948         934
                                                                    ---------    --------
Comprehensive income (loss)                                         $  20,861    $(12,875)
                                                                    =========    ========
</TABLE>

The accompanying notes are an integral part of these statements.

                                      -2-

<PAGE>


                               Trenwick Group Ltd.
                Consolidated Statement of Cash Flows (Unaudited)
            (Amounts expressed in thousands of United States dollars)
                   Three Months Ended March 31, 2001 and 2000

<TABLE>
<CAPTION>
                                                                       2001        2000
                                                                    ---------    --------
<S>                                                                 <C>          <C>
OPERATING ACTIVITIES
Premiums collected, net of acquisition costs                        $ 222,750    $ 26,696
Ceded premiums (paid) recovered, net of acquisition costs             (70,729)      4,200
Claims and claims expenses paid                                      (211,952)    (20,357)
Claims and claims expenses recovered                                   52,449       2,980
Underwriting expenses paid                                            (30,472)     (2,163)
                                                                    ---------    --------
Cash (for) from underwriting activities                               (37,954)     11,356
Net investment income received                                         32,248       9,379
Service and other income received, net of expenses                        904          --
General and administrative expenses paid                               (4,222)       (452)
Interest expense and dividends on preferred stock of subsidiaries      (7,220)       (305)
Income taxes recovered                                                    325          --
                                                                    ---------    --------
Cash from (for) operating activities                                  (15,919)     19,978
                                                                    ---------    --------
INVESTING ACTIVITIES
Purchases of debt securities                                         (606,998)    (98,774)
Sales of debt securities                                              556,481      76,898
Maturities of debt securities                                          40,913          --
Purchases of equity securities                                         (2,519)         --
Sales of equity securities                                             73,048          --
Effect on cash of exchange rate translation                            (9,179)         --
Other                                                                    (791)         --
                                                                    ---------    --------
Cash from (for) investing activities                                   50,955     (21,876)
                                                                    ---------    --------
FINANCING ACTIVITIES
Repayment of indebtedness                                                 (29)         --
Purchase of capital securities                                         (8,461)         --
Issuance of common shares                                                 275         124
Trenwick Group Ltd. common share dividends paid                        (1,473)         --
LaSalle Re Holdings preferred share dividends paid prior to
  business combination                                                     --      (1,640)
Share and option repurchases                                             (311)         --
Equity put option premium payments                                       (908)       (387)
                                                                    ---------    --------
Cash for financing activities                                         (10,907)     (1,903)
                                                                    ---------    --------
Change in cash and cash equivalents                                    24,129      (3,801)
Cash and cash equivalents, beginning of period                        311,001      19,864
                                                                    ---------    --------
Cash and cash equivalents, end of period                            $ 335,130    $ 16,063
                                                                    =========    ========
</TABLE>

The accompanying notes are an integral part of these statements.

                                      -3-

<PAGE>


                               Trenwick Group Ltd.
  Consolidated Statement of Changes in Common Shareholders' Equity (Unaudited)
   (Amounts expressed in thousands of United States dollars except share data)
                   Three Months Ended March 31, 2001 and 2000

                                                            2001         2000
                                                         ---------    ---------
Common shareholders' equity, beginning of period         $ 652,187    $ 286,960
COMMON SHARES AND ADDITIONAL  PAID IN CAPITAL
Issuance of 184,996 restricted common shares
  of Trenwick Group Ltd.                                     3,942           --
Issuance of 13,131 shares of Trenwick Group
  Ltd. and 296 common shares of LaSalle Re
  Holdings for cash under employee plans                       275            5
Issuance of 6,430 common shares of LaSalle
  Re Holdings under employee compensation plan                  --           81
Purchase and retirement of 14,609 common shares
  of Trenwick Group Ltd.                                      (311)          --
Cancellation of 3,506 restricted common share awards           (46)          --
Equity put option premiums, net of applicable
  minority interest                                           (908)        (317)
Compensation recognized under employee program                  --           21
Change in minority interest                                     --           23

DEFERRED COMPENSATION UNDER SHARE AWARD PLAN
Restricted common shares awarded                            (3,942)          --
Compensation expense recognized, net of minority
  interest                                                     629           70
Cancellation of shares                                          46           --

RETAINED EARNINGS
Net income (loss)                                           18,913      (13,809)
LaSalle Re Holdings preferred share dividends
   prior to business combination                                --       (1,640)
Trenwick Group Ltd. common share dividends,
  $0.04 per share                                           (1,473)          --
Change in minority interest                                     --            6

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Other comprehensive income (loss)                            1,948          934
                                                         ---------    ---------
Common shareholders' equity, end of period               $ 671,260    $ 272,334
                                                         =========    =========

The accompanying notes are an integral part of these statements.

                                      -4-

<PAGE>



                               TRENWICK GROUP LTD.
              Notes to Unaudited Consolidated Financial Statements
(Amounts expressed in thousands of United States dollars except per share data)
                   Three Months Ended March 31, 2001 and 2000


Note 1 Organization and Basis of Presentation

Organization

Trenwick  Group Ltd.  was formed as a holding  company in Bermuda to acquire two
publicly  held  companies  and the minority  interest in a subsidiary  of one of
those companies.  That  transaction,  in which Trenwick Group Ltd. issued common
shares to acquire  LaSalle Re  Holdings  Limited,  Trenwick  Group Inc.  and the
minority  interest in LaSalle Re Limited,  was  completed on September 27, 2000.
More details of this transaction are disclosed in Note 2.

Trenwick Group Ltd.'s principal subsidiaries  underwrite specialty insurance and
reinsurance  through  five  business  platforms:  LaSalle Re  Limited,  Trenwick
America  Reinsurance  Corporation,  Trenwick  International  Limited,  Chartwell
Managing Agents Limited and Canterbury Financial Group Inc.

Basis of Presentation

The business  combination between LaSalle Re Holdings Limited and Trenwick Group
Inc. was accounted for as a purchase by LaSalle Re Holdings  Limited of Trenwick
Group  Inc.  and of the  minority  interest  in LaSalle  Re  Limited,  effective
September 27, 2000. Accordingly, in these financial statements:

-    the assets and liabilities  presented  include those of LaSalle Re Holdings
     Limited,  the  minority  interest  in  LaSalle  Re  Limited  and the former
     Trenwick Group Inc.;

-    the revenues and expenses of LaSalle Re Holdings Limited have been included
     for all periods presented;

-    the minority  interest in common shares and minority interest in net income
     of LaSalle Re Limited have been  eliminated in the three months ended March
     31, 2001; and

-    the revenues and expenses of the former  Trenwick  Group Inc. were excluded
     from the three  months  ended  March 31,  2000 and  included  for the three
     months ended March 31, 2001.

The interim financial statements include the accounts of Trenwick Group Ltd. and
its  subsidiaries  after  elimination of significant  intercompany  accounts and
transactions. Certain items in prior financial statements have been reclassified
to conform to current presentation.

These  interim  financial  statements  have been  prepared  in  conformity  with
accounting  principles  that are  generally  accepted  in the  United  States of
America,  sometimes referred to as U.S. GAAP. To prepare these interim financial
statements, management is required to make estimates and assumptions that affect
the reported  amounts of assets and  liabilities  and  disclosure  of contingent
assets and liabilities at the date of the financial  statements,  as well as the
reported amounts of revenues and expenses during the reporting  periods.  Actual
amounts may differ from these estimates.

The interim  financial  statements  are  unaudited;  however,  in the opinion of
management, the interim financial statements include all adjustments, consisting
only of normal  recurring  adjustments,  necessary  for a fair  statement of the
results  for  interim  periods.  These  interim  statements  should  be  read in
conjunction with the audited

                                      -5-

<PAGE>


financial  statements  and related  notes  included in the Annual Report on Form
10-K of Trenwick Group Ltd. for the year ended December 31, 2000.

Note 2 Business Combinations

Trenwick/LaSalle  Business Combination

On  December  19,  1999,  LaSalle Re  Holdings  Limited,  LaSalle Re Limited and
Trenwick Group Inc. signed a definitive agreement to combine under a new holding
company,  Trenwick Group Ltd. On September 27, 2000,  following  shareholder and
regulatory  approval,  the newly formed  Trenwick  Group Ltd.  issued its common
shares on a one-for-one, tax-free basis to the former shareholders of LaSalle Re
Holdings Limited, the minority  shareholders of LaSalle Re Limited, then a 77.5%
owned subsidiary of LaSalle Re Holdings Limited,  and the former shareholders of
Trenwick Group Inc.

The  Trenwick/LaSalle  business  combination  was accounted for as a purchase by
LaSalle Re Holdings  Limited of the minority  interest in LaSalle Re Limited and
of Trenwick  Group Inc.  Under the purchase  basis of  accounting,  the purchase
price was allocated to the identifiable assets acquired and liabilities assumed,
based on their estimated fair values at the date of  acquisition.  The excess of
the purchase  price over the estimated  fair value of those net assets  acquired
was recorded as goodwill, and is being amortized over twenty-five years.

Note 3 Segment Information

The following tables present business segment financial information for Trenwick
Group Ltd. at March 31,  2001 and  December  31,  2000 and for the three  months
ended March 31, 2001 and 2000:

                                                       2001         2000
                                                    ----------   ----------
Total assets:
Worldwide property catastrophe reinsurance          $  570,994   $  557,401
U.S. treaty reinsurance                              1,552,536    1,759,678
International specialty insurance and reinsurance      469,593      473,612
Lloyd's syndicates:
   Continuing                                          886,826      808,483
   Runoff                                              115,602      157,627
U.S. specialty program insurance                       478,025      372,933
Unallocated                                            225,307       90,318
                                                    ----------   ----------
Total assets                                        $4,298,883   $4,220,052
                                                    ==========   ==========

                                                       2001         2000
                                                    ----------   ----------
Total revenues:
Worldwide property catastrophe reinsurance          $   31,011   $   29,842
U.S. treaty reinsurance                                 71,107           --
International specialty insurance and reinsurance       44,356           --
Lloyd's syndicates:
   Continuing                                           73,493        1,172
   Runoff                                                1,672        2,910
U.S. specialty program insurance                        19,571           --
Unallocated                                              2,352           --
                                                    ----------   ----------
Total revenues                                      $  243,562   $   33,924
                                                    ==========   ==========

                                      -6-

<PAGE>




                                                       2001         2000
                                                    ----------   ----------
Net income (loss):
Worldwide property catastrophe reinsurance          $   18,207   $  (11,571)
U.S. treaty reinsurance                                  6,591           --
International specialty insurance and reinsurance         (427)          --
Lloyd's syndicates:
   Continuing                                              421         (365)
   Runoff                                                 (992)      (1,873)
U.S. specialty program insurance                         1,107           --
Unallocated                                             (5,994)          --
                                                    ----------   ----------
Net income (loss)                                   $   18,913   $  (13,809)
                                                    ==========   ==========

Revenues from  transactions  between operating  segments,  which are immaterial,
have been  eliminated in  consolidation.  Unallocated net income (loss) consists
mainly of interest expense and dividends on preferred stock of subsidiaries, net
of minority interest and income taxes.

Note 4 Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per
share for the three months ended March 31, 2001 and 2000:

<TABLE>
<CAPTION>
                                                            2001           2000
                                                         -----------   ------------
<S>                                                      <C>           <C>
INCOME (LOSS) AVAILABLE TO COMMON SHAREHOLDERS
Net income (loss) available to common shareholders -
  basic and diluted                                      $    18,913   $    (15,449)
                                                         ===========   ============

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
Weighted average shares outstanding - basic               36,722,298     15,609,993
Net weighted average shares issuable (when dilutive) on
   exercise of stock options and warrants for 823,964
   common shares                                             157,396             --
                                                         -----------   ------------
Weighted average shares outstanding - diluted             36,879,694     15,609,993
                                                         ===========   ============
Basic earnings (loss) per common share                   $      0.52   $      (0.99)
                                                         ===========   ============
Diluted earnings (loss) per common share                 $      0.51   $      (0.99)
                                                         ===========   ============
</TABLE>


Note 5 Underwriting Activities

The  components of premiums  written and earned for the three months ended March
31, 2001 and 2000 are as follows:

                                                       2001              2000
                                                    ---------          --------
Assumed premiums written                            $ 173,549          $ 65,166
Direct premiums written                               178,976                --
                                                    ---------          --------
Gross premiums written                                352,525            65,166
Ceded premiums written                                (92,884)          (16,683)
                                                    ---------          --------
Net premiums written                                $ 259,641          $ 48,483
                                                    =========          ========

Assumed premiums earned                             $ 113,449          $ 34,461
Direct premiums earned                                168,093                --
                                                    ---------          --------
Gross premiums earned                                 281,542            34,461
Ceded premiums earned                                 (79,866)           (7,249)
                                                    ---------          --------
Net premiums earned                                 $ 201,676          $ 27,212
                                                    =========          ========

                                      -7-

<PAGE>


MANAGEMENT'S  DISCUSSION  AND  ANALYSIS OF  FINANCIAL  CONDITION  AND RESULTS OF
OPERATIONS

The following  discussion  highlights  material factors affecting Trenwick Group
Ltd.'s results of operations for the three months ended March 31, 2001 and 2000.
This  discussion and analysis  should be read in conjunction  with the unaudited
interim financial  statements and notes thereto of Trenwick Group Ltd. contained
in this filing as well as in conjunction with the audited  financial  statements
and related notes  included in the Annual Report on Form 10-K of Trenwick  Group
Ltd. for the year ended December 31, 2000.

Overview

Trenwick  Group Ltd. is a Bermuda  holding  company  headquartered  in Hamilton,
Bermuda  whose  principal   subsidiaries   underwrite  specialty  insurance  and
reinsurance.  Trenwick  Group Ltd. was formed in 1999 to acquire  Trenwick Group
Inc.,  LaSalle Re Holdings  Limited and LaSalle Re Limited.  The transaction was
completed on September 27, 2000. Shareholders of Trenwick Group Inc., LaSalle Re
Holdings Limited and LaSalle Re Limited  exchanged their shares on a one-for-one
basis for newly-issued shares of Trenwick Group Ltd. LaSalle Re Holdings Limited
was the accounting acquiror in the Trenwick/LaSalle business combination, and as
such the  financial  statements  reflect the results of operations of LaSalle Re
Holdings  Limited  prior to  September  27,  2000 and the  combined  results  of
operations of LaSalle Re Holdings  Limited and Trenwick  Group Inc. on and after
September 27, 2000.

Trenwick Group Ltd.  operates  through the following  five  principal  operating
platforms:

o LaSalle  Re  Limited,  which is  located  in  Hamilton,  Bermuda,  underwrites
property catastrophe reinsurance on a worldwide basis;

o  Trenwick  America  Reinsurance  Corporation,  which is  located  in  Stamford
Connecticut,  underwrites  treaty  reinsurance  on United  States  property  and
casualty risks,  including United States reinsurance business previously written
by Chartwell Re Corporation subsidiaries;

o  Trenwick  International  Limited,  which  is  located  in  London,   England,
underwrites  specialty  insurance and treaty and  facultative  reinsurance  on a
worldwide basis;

o  Chartwell  Managing  Agents  Limited,  which is located  in London,  England,
manages underwriting syndicates in the Lloyd's market,  principally for Trenwick
Group Ltd.'s own account; and

o Canterbury  Financial Group Inc.,  which is located in Stamford,  Connecticut,
underwrites  specialty insurance through its operating  subsidiaries,  Chartwell
Insurance  Company,  The Insurance  Corporation of New York and Dakota Specialty
Insurance Company.

All of  Trenwick  Group  Ltd.'s  principal  operating  subsidiaries  are rated A
(Excellent)  by A.M.  Best Company and have been  assigned a financial  strength
rating of A+ by Standard and Poor's.  All of Chartwell Managing Agents Limited's
syndicates  enjoy the  benefit  of the  ratings  of  Lloyd's  which is rated "A"
(Excellent)  by A.M. Best Company and has an A+ financial  strength  rating from
Standard & Poor's.  These  ratings are based upon factors that may be of concern
to policy or contract holders,  agents and  intermediaries,  but may not reflect
the  considerations  applicable  to an equity  investment  in a  reinsurance  or
insurance  company.  A change  in any such  rating is at the  discretion  of the
respective rating agencies.

                                       -8-

<PAGE>


Results of Operations - Three Months Ended March 31, 2001 and Three Months Ended
March 31, 2000


<TABLE>
<CAPTION>
                                                     2001        2000       Change
                                                   --------    --------    --------
                                                            (in thousands)
<S>                                                <C>         <C>         <C>
Underwriting income (loss)                         $(14,102)   $(24,610)   $ 10,508
Net investment income                                32,184       8,936      23,248
Interest expense and dividends on
   preferred stock of subsidiaries                   (7,472)       (305)     (7,167)
General and administrative expenses                  (3,889)       (452)     (3,437)
Other income, net                                       843          --         843
                                                   --------    --------    --------
Pre-tax operating income (loss)                       7,564     (16,431)     23,995
Applicable income taxes (benefit)                    (4,533)         --      (4,533)
                                                   --------    --------    --------
Operating income (loss)                              12,097     (16,431)     28,528
Minority interest in operating (income) loss of
subsidiary                                               --       4,162      (4,162)
Net realized investment gains (losses), net of
minority interest and income taxes                    7,772      (1,668)      9,440
Foreign currency gains (losses), net of minority
interest and income taxes                              (956)        128      (1,084)
                                                   --------    --------    --------

Net income (loss)                                  $ 18,913    $(13,809)   $ 32,722
                                                   ========    ========    ========
</TABLE>

Operating  income of $12.1  million in the three  months  ended  March 31,  2001
represented  a $28.5 million  increase over the operating  loss of $16.4 million
recorded  in the  three  months  ended  March 31,  2000.  This  improvement  was
principally the result of improved  underwriting  results,  as well as increased
investment  income.  The increase in investment income in 2000 was the result of
the increase in the size of the investment  portfolio from the  Trenwick/LaSalle
business  combination.  The increase of $32.7 million in net income in 2001 when
compared to 2000 was the result of the increase in operating income, the absence
of a minority  interest in 2001, and the increase in realized  investment gains,
offset in part by an increase in foreign  exchange losses which are discussed on
page 12 under the caption "Non-Operating Income and Expenses."

Underwriting income (loss)

The underwriting  result for the three months ended March 31, 2000 included only
the  results of LaSalle Re Holdings  Limited;  the  underwriting  result for the
three  months ended March 31, 2001  included the combined  results of LaSalle Re
Holdings Limited and Trenwick Group Inc.

<TABLE>
<CAPTION>
                                                2001          2000         Change
                                              ---------     --------     ---------
                                                         (in thousands)
<S>                                           <C>           <C>          <C>
Net premiums earned                           $ 201,676     $ 27,212     $ 174,464
                                              ---------     --------     ---------
Claims and claims expenses incurred             140,248       43,546        96,702
Acquisition costs and underwriting expenses      75,530        8,276        67,254
                                              ---------     --------     ---------
Total expenses                                  215,778       51,822       163,956
                                              ---------     --------     ---------
Net underwriting loss                         $ (14,102)    $(24,610)    $  10,508
                                              =========     ========     =========
Loss ratio                                         69.5%       160.0%        (90.5)%
Underwriting expense ratio                         37.5%        30.4%        7.1 %
Combined ratio                                    107.0%       190.4%        (83.4)%
</TABLE>



The  underwriting  loss of $14.1  million in 2001  represented  a $10.5  million
decrease  compared  to the  underwriting  loss of $24.6  million  in  2000.  The
reduction in  underwriting  loss was primarily

                                       -9-

<PAGE>


due to the absence of  significant  catastrophe  losses in the first  quarter of
2001  compared to the same period last year.  During the first  quarter of 2000,
underwriting  results  included  additions  to loss  reserves  of $23.0  million
relating to the December 1999 winter storms which hit France and Denmark.

The  decrease in the combined  ratio in 2001  compared to 2000  resulted  from a
significant  change in  Trenwick  Group  Ltd.'s mix of  business  following  the
Trenwick/LaSalle  business combination.  Both the decrease in the loss ratio and
the increase in the  underwriting  expense ratio in the three months ended March
31, 2001 as compared to the three months ended March 31, 2000  resulted from the
inclusion of Trenwick Group Inc.'s casualty business in the underwriting results
in 2001.  The decline in the loss ratio in 2001 also  occurred  due to the lower
number of catastrophic events compared to the same period in 2000.

Premiums written

Gross premiums  written for 2001 were $352.5  million  compared to $65.2 million
for the three  months  ended March 31,  2000,  an increase of $287.3  million or
441.0%. Details of gross premiums written are provided below:

<TABLE>
<CAPTION>
                                                       2001       2000       Change
                                                    ---------    -------   ---------
                                                              (in thousands)
<S>                                                 <C>          <C>       <C>
Worldwide property catastrophe reinsurance          $  58,947    $58,393   $     554
U.S. treaty reinsurance                                81,531         --      81,531
International specialty insurance and reinsurance      62,218         --      62,218
Lloyd's syndicates:
   Continuing                                          84,157      1,959      82,198
   Runoff                                              (2,886)     4,814      (7,700)
U.S. specialty program insurance                       68,558         --      68,558
                                                    ---------    -------   ---------
Gross premiums written                              $ 352,525    $65,166   $ 287,359
                                                    =========    =======   =========
</TABLE>

Worldwide property catastrophe  reinsurance gross premium writings for the three
months  ended March 31, 2001 were  relatively  unchanged  from the three  months
ended March 31, 2000.

The increase in Lloyd's gross written premiums for 2001 compared to 2000 was due
to the addition of Trenwick Group Inc.'s Lloyd's operations managed by Chartwell
Managing  Agents  Limited  from the  Trenwick/LaSalle  business  combination.  A
majority of the Lloyd's  syndicate gross written  premiums in 2001 represent the
first quarter bookings of business managed by Chartwell Managing Agents Limited.
The majority of Lloyd's  business  underwritten  by LaSalle Re Holdings  Limited
prior to the combination with Trenwick Group Inc. was not renewed as of December
31, 2000 and have been classified as runoff. Additionally, results of operations
from Lloyd's syndicates which were sold by Trenwick Group Inc. in 1999 have also
been classified as runoff.

U.S. treaty reinsurance,  international  specialty insurance and reinsurance and
U.S.  specialty  program  insurance gross premiums written increased from $0 for
the first quarter of 2000 to $81.5  million,  $62.2  million and $68.6  million,
respectively,  for the  first  quarter  of 2001.  Trenwick  Group  Ltd.  did not
underwrite these businesses prior to the Trenwick/LaSalle business combination.

Premiums earned
                                      2001         2000        Change
                                    ---------    --------    ---------
                                              (in thousands)
Gross premiums written              $ 352,525    $ 65,166    $ 287,359
Change in gross unearned premiums     (70,983)    (30,705)      40,278
                                    ---------    --------    ---------
Gross premiums earned                 281,542      34,461      247,081
                                    ---------    --------    ---------

Gross premiums ceded                  (92,885)    (16,683)     (76,202)
Change in ceded unearned premiums      13,019       9,434        3,585
                                    ---------    --------    ---------
Ceded premiums earned                 (79,866)     (7,249)     (72,617)
                                    ---------    --------    ---------
Net premiums earned                 $ 201,676    $ 27,212    $ 174,464
                                    =========    ========    =========

                                      -10-

<PAGE>


Gross  premiums  ceded for the three  months  ended  March 31,  2001 were  $92.9
million  compared to $16.7 million for the same period in 2000.  The increase in
gross premiums ceded of $76.2 million was due primarily to cessions  relating to
business  acquired  in the  Trenwick/LaSalle  business  combination.  Businesses
acquired  in  the   Trenwick/LaSalle   business   combination  included  Lloyd's
syndicates, international specialty insurance and reinsurance and U.S. specialty
program  insurance,  all of which  have  significantly  larger  reinsurance  and
retrocessional programs than LaSalle Re Limited.

Net  premiums  earned for the three  months  ended  March 31,  2001 were  $201.7
million  compared to $27.2 million for 2000. The increase in net premiums earned
is commensurate with the increase in net premiums written.

Claims and claims expenses

Claims and claims expenses for the three months ended March 31, 2001 were $140.2
million,  an increase of $96.7 million compared to claims and claims expenses of
$43.5  million  for 2000.  The  increase  in claims and claims  expenses in 2001
resulted mainly from the addition of business  acquired in the  Trenwick/LaSalle
business combination. During the quarter ended March 31, 2000, claims and claims
expenses  included an increase in loss reserves of $23.0 million relating to the
December 1999 winter  storms which hit France and Denmark  following an increase
in the size of the market estimate of the losses. Also,  following  notification
from a syndicate supported by LaSalle Re Capital,  $7.4 million was recorded for
loss  reserves  relating to a particular  program that was  underwritten  by the
syndicate in 1997 through to 1999.

Underwriting expenses
                                              2001          2000         Change
                                             -------       ------       -------
                                                        (in thousands)
Policy acquisition costs                     $59,206       $4,510       $54,696
Underwriting expenses                         16,324        3,766        12,558
                                             -------       ------       -------
Total underwriting expenses                  $75,530       $8,276        67,254
                                             =======       ======       =======

Underwriting expense ratio                      37.5%        30.4%          7.1%
                                             =======       ======       =======

Total   underwriting   expenses,   comprising   policy   acquisition  costs  and
underwriting   expenses,  for  2001  increased  by  $67.3  million  compared  to
underwriting  expenses for the three  months  ended March 31,  2000.  Similar to
claims and claims expenses,  the increase was attributable to expenses  incurred
on  business  acquired  in  the  Trenwick/LaSalle  business  combination.  Total
underwriting   expenses  as  a  percentage  of  net  premiums  earned,   or  the
underwriting expense ratio, were 37.5% for the three months ended March 31, 2001
compared to 30.4% for the same period in 2000. The increase in the  underwriting
expense ratio occurred  principally because of an increase in policy acquisition
costs relating to casualty  business acquired in the  Trenwick/LaSalle  business
combination.  This  business,  which  consisted  of both  treaty  insurance  and
reinsurance,  generally has a higher policy acquisition cost ratio than property
catastrophe business.

                                      -11-

<PAGE>


Underwriting  expenses for the three months ended March 31, 2001 as a percentage
of earned premium was 8.1%, a decrease of 5.7% from 13.8% for the same period in
2000. The decrease in the underwriting  expense ratio resulted from the addition
of business acquired in the Trenwick/LaSalle business combination.

Net Investment Income

                                         2001          2000           Change
                                     -----------     ---------     -----------
                                                   (in thousands)
Average invested assets              $ 2,197,793     $ 568,125     $ 1,629,668
Average annualized yields                   6.50%         6.05%           0.45%
                                     -----------     ---------     -----------
Investment income - portfolio        $    35,687     $   8,592     $    27,095

Investment income - non-portfolio            522           562             (40)
Investment expenses                       (4,025)         (218)         (3,807)
                                     -----------     ---------     -----------
Net investment income                $    32,184     $   8,936     $    23,248
                                     ===========     =========     ===========

Net  investment  income  for the three  months  ended  March 31,  2001 was $32.2
million  compared to $8.9  million for the same period in 2000.  The increase in
net  investment  income  in 2001  was due to the  increase  in  invested  assets
resulting from the Trenwick/LaSalle business combination. Investment expense for
2001 includes interest expense on funds withheld of $2.9 million under the terms
of stop loss reinsurance  agreements  purchased by Trenwick America  Reinsurance
Corporation prior to 2000. The balance of the increase in investment  expense in
2001 results from the increase in Trenwick  Group Ltd.'s  invested  assets under
management following the Trenwick/LaSalle business combination.

Interest Expense and Dividends on Preferred Stock of Subsidiaries

Interest  expense and  dividends on  preferred  stock of  subsidiaries  was $7.5
million for 2001, an increase of $7.2 million from the same period in 2000.  The
increase  resulted  from the  increase  in debt  outstanding  as a result of the
Trenwick Group Inc. debt assumed by Trenwick Group Ltd.'s  subsidiaries  as well
as the inclusion of dividends on preferred stock of LaSalle Re Holdings  Limited
in 2001, both as a result of the Trenwick/LaSalle business combination.

Non-Operating Income and Expenses

Minority  interest  represents the minority interest in common shares of LaSalle
Re Limited held by third party investors prior to the Trenwick/LaSalle  business
combination  on  September  27,  2000.  Net income  attributed  to the  minority
interest was calculated as 25.3% of net income in the first quarter of 2000.

Net realized  gains on  investments,  net of  applicable  minority  interest and
income  taxes,  were $7.8 million  during the three months ended March 31, 2001,
compared to net realized losses of $1.7 million for the three months ended March
31,  2000.  Both the gains and losses  were made as a result of  security  sales
executed  pursuant to an investment policy designed to protect the total returns
on the portfolio.

Trenwick Group Ltd. recorded foreign currency losses, net of applicable minority
interest and income taxes,  of $1.0 million for the three months ended March 31,
2001,  compared to foreign  currency  gains of $0.1 million for the three months
ended March 31, 2000 due to the decline in the value of European  currencies  in
the latter portion of 2000, principally the British pound sterling,  against the
US dollar.

                                      -12-

<PAGE>


Liquidity and Capital Resources

As of March 31, 2001,  Trenwick Group Ltd.'s  consolidated  investments and cash
totaled $2.2 billion,  unchanged from the balance at December 31, 2000. The cost
of Trenwick Group Ltd.'s equity securities was $2.3 million less than fair value
at March 31, 2001 and exceeded  fair value by $2.1 million at December 31, 2000.
The fair value of Trenwick Group Ltd.'s debt securities  exceeded amortized cost
by $33.0 million at March 31, 2001 and by $27.0 million at December 31, 2000.

As of March 31, 2001,  Trenwick  Group Ltd.  consolidated  common  stockholders'
equity totaled $671.3  million,  or $18.22 per common share,  compared to $652.2
million,  or $17.79 per common  share at  December  31,  2000.  During the three
months  ended March 31, 2001,  the  unrealized  appreciation  of debt and equity
securities increased by $7.2 million, net of tax, or $0.20 per share.

Cash used in Trenwick  Group Ltd.'s  operating  activities  for the three months
ended March 31,  2001 was $15.9  million  compared to cash  provided by Trenwick
Group Ltd.'s operating  activities of $20.0 million in the comparable  period of
2000. The reduction in cash flow from operations was due primarily to an overall
increase  in claims  and  claims  expenses  paid as a result of an  increase  in
catastrophe losses in both 1999 and 2000.

Net cash used in  financing  activities  during the three months ended March 31,
2001 included $1.5 million of dividends paid to common shareholders.  During the
three  months  ended  March  31,  2000,  net cash used in  financing  activities
included $1.6 million of dividends to preferred shareholders.

Trenwick  Group  Ltd.  paid a dividend  of $0.04 per  common  share in the first
quarter of 2001 and LaSalle Re  Holdings  Limited  paid a quarterly  dividend of
$.55 per share on the Series A preferred  shares of LaSalle Re Holdings  Limited
in each of the three months ended March 31, 2001 and 2000. Trenwick Group Ltd.'s
Board of Directors  reviews  Trenwick  Group Ltd.'s  common share  dividend each
quarter.  Among the factors  considered by the Board of Directors in determining
the amount of each dividend are Trenwick  Group Ltd.'s results of operations and
the capital requirements, growth and other characteristics of its businesses.

Trenwick  Group Ltd.'s total debt to capital  ratio  (total debt  excluding  the
preferred  capital   securities   divided  by  total  debt,   preferred  capital
securities, preferred shares and common shareholders' equity) decreased to 25.8%
at March 31, 2001 from 26.3% on December 31, 2000.

Quantitative and Qualitative Disclosure About Market Risk

Trenwick  Group Ltd.  reviewed  the change in its exposure to market risks since
December 31, 2000. In addition,  the components of its  investment  holdings and
its  risk  management  strategy  and  objectives  have not  materially  changed.
Therefore,  Trenwick  Group Ltd.  believes  that the  potential for loss in each
market risk  sector  described  in the 2000  Annual  Report on Form 10-K has not
materially changed.

Accounting Standards

Effective  January  1,  2001,  Trenwick  Group  Ltd.  implemented  Statement  of
Financial  Accounting Standard No. 133,  "Accounting for Derivative  Instruments
and Hedging  Activities."  This statement  establishes  accounting and reporting
standards for derivative  instruments,  including certain derivative instruments
embedded in other  contracts,  and for hedging  activities.  It requires that an
entity  recognize  all  derivatives  as  either  assets  or  liabilities  in the
statement of financial position and measure those instruments at fair value. The
adoption of this statement had no effect on Trenwick  Group Ltd.'s  consolidated
financial statements.

                                      -13-

<PAGE>


Safe Harbor Disclosure

In  connection  with the "safe  harbor"  provisions  of the  Private  Securities
Litigation  Reform Act of 1995,  Trenwick Group Ltd. sets forth below cautionary
statements  identifying  important risks and uncertainties  that could cause its
actual  results  to  differ  materially  from  those  that  might be  projected,
forecasted or estimated in its  "forward-looking  statements" within the meaning
of Section 27A of the  Securities  Act of 1933 and Section 21E of the Securities
Exchange  Act of 1934,  made by or on  behalf of  Trenwick  Group  Ltd.  in this
Quarterly  Report  on Form 10-Q and in press  releases,  written  statements  or
documents  filed  with  the  Securities  and  Exchange  Commission,  or  in  its
communications  and discussions with investors and analysts in the normal course
of business through meetings,  phone calls and conference calls. Such statements
may include, but are not limited to, projections of premium revenue,  investment
income,  other  revenue,  losses,  expenses,  earnings  (including  earnings per
share),  cash flows, plans for future operations,  common  shareholders'  equity
(including book value per share),  investments,  financing needs, capital plans,
dividends,  plans  relating to products or services of Trenwick  Group Ltd.  and
estimates  concerning  the effects of litigation or other  disputes,  as well as
assumptions for any of the foregoing and generally  expressed with words such as
"believes,"   "estimates,"   "expects,"   "anticipates,"   "plans,"  "projects,"
"forecasts," "goals," "could have," "may have," and similar expressions.

Forward-looking  statements  involve known and unknown risks and  uncertainties,
which may cause  Trenwick Group Ltd.'s  results to differ  materially  from such
forward-looking  statements.  These risks and uncertainties include, but are not
limited to, the following:

-    Changes  in the level of  competition  in the  domestic  and  international
     reinsurance  or  primary  insurance  markets  that  affect  the  volume  or
     profitability of Trenwick Group Ltd.'s  property/casualty  business.  These
     changes include,  but are not limited to, changes in the intensity of price
     competition, the entry of new competitors, existing competitors exiting the
     market and the development of new products by new and existing competitors;

-    Changes  in  the  demand  for  reinsurance,  including  changes  in  ceding
     companies' risk retentions and changes in the demand for excess and surplus
     lines insurance coverages;

-    The  ability of  Trenwick  Group  Ltd.  to execute  its  strategies  in its
     property/casualty operations;

-    Catastrophe  losses in Trenwick  Group Ltd.'s  domestic  and  international
     property/casualty businesses;

-    Adverse  development  on   property/casualty   claims  and  claims  expense
     liabilities related to business written in prior years, including,  but not
     limited to,  evolving  case law and its effect on  environmental  and other
     latent injury claims,  changing  government  regulations,  newly identified
     toxins, newly reported claims, new theories of liability,  or new insurance
     and reinsurance contract interpretations;

-    Changes  in  Trenwick   Group   Ltd.'s   property/casualty   retrocessional
     arrangements;

-    Lower than estimated  retrocessional  or  reinsurance  recoveries on unpaid
     losses,  including,  but not  limited  to,  losses  due to a decline in the
     creditworthiness of Trenwick Group Ltd.'s retrocessionaires or reinsurers;

-    Increases  in interest  rates,  which may cause a  reduction  in the market
     value of Trenwick  Group  Ltd.'s  fixed  income  portfolio,  and its common
     shareholders' equity;

-    Decreases in interest rates which may cause a reduction of income earned on
     new cash flow from  operations  and the  reinvestment  of the proceeds from
     sales or maturities of existing investments;

-    A decline in the value of Trenwick Group Ltd.'s equity investments;

-    Changes in the composition of Trenwick Group Ltd.'s investment portfolio;

-    Credit losses on Trenwick Group Ltd.'s investment portfolio;

-    Adverse  results in  litigation  matters,  including,  but not  limited to,
     litigation related to environmental, asbestos and other potential mass tort
     claims;

                                      -14-

<PAGE>


-    The passage of federal or state legislation  subjecting  LaSalle Re Limited
     to United States taxation or regulation;

-    A contention by the United States Internal  Revenue Service that LaSalle Re
     Limited is subject to United States taxation;

-    The impact of mergers and acquisitions;

-    Gains or losses related to changes in foreign currency exchange rates; and

-    Changes in Trenwick Group Ltd.'s capital needs.

In addition to the factors  outlined above that are directly related to Trenwick
Group Ltd.'s businesses, Trenwick Group Ltd. is also subject to general business
risks,  including,  but not  limited  to,  adverse  state,  federal  or  foreign
legislation  and  regulation,  adverse  publicity or news  coverage,  changes in
general economic factors and the loss of key employees.

The  facts  set  forth  above  should  be  considered  in  connection  with  any
forward-looking  statement  contained in this Quarterly Report on Form 10-Q. The
important factors that could affect such forward-looking  statements are subject
to change, and Trenwick Group Ltd. does not intend to update any forward-looking
statement or the foregoing list of important  factors.  By this  cautionary note
Trenwick  Group Ltd.  intends to avail itself of the safe harbor from  liability
with respect of forward-looking  statements  provided by Section 27A and Section
21E referred to above.

                                      -15-

<PAGE>



                           PART II - OTHER INFORMATION

Item 1   Legal Proceedings

     Trenwick Group Ltd. is party to various legal proceedings generally arising
in the normal course of its business.  Trenwick Group Ltd. does not believe that
the eventual  outcome of any such  proceeding will have a material effect on its
financial  condition  or  business.   Trenwick  Group  Ltd.'s  subsidiaries  are
regularly  engaged in the investigation and the defense of claims arising out of
the conduct of their business.  Pursuant to Trenwick Group Ltd.'s  insurance and
reinsurance arrangements,  disputes are generally required to be finally settled
by arbitration.

Item 2. Changes in Securities and Use of Proceeds

        None

Item 3. Defaults Upon Senior Securities

        None

Item 4. Submission of Matters to a Vote of Security Holders

        None

Item 5. Other Information

        None

Item 6. Exhibits and reports on Form 8-K

     (a)  Exhibits

          None

     (b)  Reports on Form 8-K

          None

                                      -16-

<PAGE>


                                   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 LTD.

Date: May 15, 2001                  By: /s/  James F. Billett, Jr.
                                        --------------------------
                                        Name: James F. Billett, Jr.
                                        Title: Chairman, President and
                                               Chief Executive Officer


Date:  May 15, 2001                 By: /s/ Coleman D. Ross
                                        -------------------
                                        Name: Coleman D. Ross
                                        Title: Executive Vice President and
                                               Chief Financial Officer

                                      -17-