================================================================================

                       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 September 30, 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 November 13, 2001
------------------------------                      -----------------------
Common Shares - $.10 par value                           36,859,840

<PAGE>

                               TRENWICK GROUP LTD.
                               INDEX TO FORM 10-Q

                         PART I - FINANCIAL INFORMATION
<TABLE>
<CAPTION>
                                                                                             Page
                                                                                             ----
<S>       <C>                                                                                 <C>
ITEM 1.   Unaudited Consolidated Financial Statements

          Consolidated Balance Sheet
          September 30, 2001 and December 31, 2000 .........................................  1

          Consolidated Statement of Operations and Comprehensive Income
          Three and Nine Months Ended September 30, 2001 and 2000 ..........................  2

          Consolidated Statement of Cash Flows
          Nine Months ended September 30, 2001 and 2000 ....................................  3

          Consolidated Statement of Changes in Common Shareholders' Equity
          Nine Months Ended September 30, 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 .......................................................................  10

ITEM 3.   Quantitative and Qualitative Disclosure About Market Risk.........................  20

                           PART II - OTHER INFORMATION

ITEM 1.   Legal proceedings ................................................................  23

ITEM 2.   Changes in Securities and Use of Proceeds ........................................  23

ITEM 3.   Defaults Upon Senior Securities ..................................................  23

ITEM 4.   Submission of Matters to a Vote of Security Holders ..............................  23

ITEM 5.   Other Information ................................................................  23

ITEM 6.   Exhibits and Reports on Form 8-K .................................................  23

Signatures .................................................................................  24
</TABLE>

<PAGE>

                               Trenwick Group Ltd.
                           Consolidated Balance Sheet
           (Amounts expressed in thousands of United States dollars,
                        except share and per share data)
              September 30, 2001 (Unaudited) and December 31, 2000

<TABLE>
<CAPTION>
                                                               2001         2000
                                                           -----------  ----------
<S>                                                        <C>          <C>
ASSETS
Debt securities available for sale, at fair value          $2,026,618   $1,813,678
Equity securities at fair value                                23,185      115,901
Cash and cash equivalents                                     269,528      311,001
Accrued investment income                                      35,663       38,171
Premiums receivable                                           548,138      473,245
Reinsurance recoverable balances, net                       1,367,288      932,051
Prepaid reinsurance premiums                                  184,688      147,399
Deferred policy acquisition costs                             117,258      100,423
Net deferred income taxes                                     116,011      104,889
Other assets                                                  185,471      183,294
                                                           ----------   ----------
Total assets                                               $4,873,848   $4,220,052
                                                           ==========   ==========
LIABILITIES
Unpaid claims and claims expenses                          $3,005,854   $2,408,926
Unearned premium income                                       603,165      496,338
Reinsurance balances payable                                  169,082      133,160
Indebtedness                                                  298,858      286,805
Other liabilities                                             106,125       90,866
                                                           ----------   ----------
Total liabilities                                           4,183,084    3,416,095
                                                           ----------   ----------
MINORITY INTEREST
Mandatorily redeemable preferred capital securities
   of subsidiary trust holding solely junior subordinated
   debentures of U.S. subsidiary                               68,716       76,770
Preferred shares of Bermuda subsidiary                         75,000       75,000
                                                           ----------   ----------
Total minority interest                                       143,716      151,770
                                                           ----------   ----------
COMMON SHAREHOLDERS' EQUITY
Common shares, $0.10 par value, 36,859,840 and
   36,665,103 shares issued and outstanding                     3,686        3,667
Additional paid in capital                                    578,570      575,401
Deferred compensation under share award plans                  (5,589)      (2,660)
Retained earnings (accumulated deficit)                       (73,958)      58,485
Accumulated other comprehensive income                         44,339       17,294
                                                           ----------   ----------
Total common shareholders' equity                             547,048      652,187
                                                           ----------   ----------
Total liabilities, minority interest and
   common shareholders' equity                             $4,873,848   $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 and Nine Months Ended September 30, 2001 and 2000

<TABLE>
<CAPTION>
                                                  Three Months            Nine Months
                                              --------------------   ---------------------
                                                 2001        2000       2001        2000
                                              ---------    -------   ---------    --------
<S>                                           <C>          <C>       <C>          <C>
Revenues:
Net premiums earned                           $ 239,862    $26,751   $ 667,208    $ 82,739
Net investment income                            30,770      9,591      96,141      27,778
Net realized investment gains (losses)           (3,302)       270       7,828      (1,916)
Other income                                      1,233         --       3,285          --
                                              ---------    -------   ---------    --------
Total revenues                                  268,563     36,612     774,462     108,601
                                              ---------    -------   ---------    --------

Expenses:
Claims and claims expenses incurred             264,344     15,924     638,176      69,190
Policy acquisition costs                         75,017      5,621     197,473      16,269
Underwriting expenses                            21,352      3,264      56,892      10,387
General and administrative expenses               3,845        424      15,122       3,293
Interest expense and dividends on
   preferred shares of subsidiaries               9,601        304      30,054         915
Foreign currency losses                           1,397        426       2,932          53
                                              ---------    -------   ---------    --------
Total expenses                                  375,556     25,963     940,649     100,107
                                              ---------    -------   ---------    --------
Income (loss) before other minority
   interest and income taxes                   (106,993)    10,649    (166,187)      8,494
Other minority interest in net
   income of subsidiary                              --      2,097          --         839
                                              ---------    -------   ---------    --------
Income (loss) before income taxes (benefit)    (106,993)     8,552    (166,187)      7,655
Applicable income taxes (benefit)               (10,886)        --     (38,187)         --
                                              ---------    -------   ---------    --------
Net income (loss)                               (96,107)     8,552    (128,000)      7,655
Dividends on preferred shares                        --      1,641          --       4,923
                                              ---------    -------   ---------    --------
Net income (loss) available to
   common shareholders                        $ (96,107)   $ 6,911   $(128,000)   $  2,732
                                              =========    =======   =========    ========
EARNINGS PER COMMON SHARE
Basic and diluted earnings (loss)
   per share                                  $   (2.61)   $  0.44   $   (3.48)   $   0.17
                                              =========    =======   =========    ========
COMPREHENSIVE INCOME (LOSS):
Net income (loss)                             $ (96,107)   $ 8,552   $(128,000)   $  7,655
                                              ---------    -------   ---------    --------
Other comprehensive income (loss):
   Net unrealized investment gains               28,314      3,613      29,607       4,615
   Foreign currency translation adjustments       2,121         --      (2,562)         --
                                              ---------    -------   ---------    --------
   Total other comprehensive income              30,435      3,613      27,045       4,615
                                              ---------    -------   ---------    --------
Comprehensive income (loss)                   $ (65,672)   $12,165   $(100,955)   $ 12,270
                                              =========    =======   =========    ========
</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)
                  Nine Months Ended September 30, 2001 and 2000

                                                       Nine Months
                                                 -----------------------
                                                    2001          2000
                                                 ----------    ---------
OPERATING ACTIVITIES
Premiums collected, net of acquisition costs    $   741,435    $  89,307
Ceded premiums paid, net of acquisition costs      (226,382)     (20,932)
Claims and claims expenses paid                    (621,610)     (79,712)
Claims and claims expenses recovered                139,179       10,312
Underwriting expenses paid                          (71,620)     (18,615)
                                                -----------    ---------
Cash for underwriting activities                    (38,998)     (19,640)
Net investment income received                      116,607       27,615
Other income received, net of expenses                  112           --
General and administrative expenses paid            (15,682)        (876)
Interest expense and subsidiary preferred
   share dividends paid                             (27,164)        (915)
Income taxes paid                                    (1,007)          --
                                                -----------    ---------
Cash from operating activities                       33,868        6,184
                                                -----------    ---------
INVESTING ACTIVITIES
Purchases of debt securities                     (1,250,816)    (206,856)
Sales of debt securities                          1,002,121      197,979
Maturities of debt securities                        86,472           --
Purchases of equity securities                       (2,514)          --
Sales of equity securities                           97,926           --
Cash acquired in purchase of subsidiary                  --      188,917
Effect on cash of exchange rate translation          (2,625)          --
Other                                                (5,088)         (11)
                                                -----------    ---------
Cash from (for)investing activities                 (74,524)    180,029
                                                -----------    ---------
FINANCING ACTIVITIES
Issuance of indebtedness                             14,000           --
Repayment of indebtedness                              (647)          --
Purchase of capital securities                       (8,462)          --
Issuance of common shares                               364        1,124
Trenwick Group Ltd. common share
   dividends paid                                    (4,442)          --
LaSalle Re Holdings preferred share dividends
   paid prior to business combination                    --       (4,923)
Share and option repurchases                           (311)      (3,175)
Equity put option premium payments                   (1,319)        (825)
                                                -----------    ---------
Cash for financing activities                          (817)      (7,799)
                                                -----------    ---------
Change in cash and cash equivalents                 (41,473)     178,414
Cash and cash equivalents, beginning of period      311,001       19,864
                                                -----------    ---------
Cash and cash equivalents, end of period        $   269,528    $ 198,278
                                                ===========    =========

        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)
                  Nine Months Ended September 30, 2001 and 2000

<TABLE>
<CAPTION>
                                                                            2001        2000
                                                                         ---------    --------
<S>                                                                      <C>          <C>
Common shareholders' equity, beginning of period                         $ 652,187    $286,960
COMMON SHARES AND ADDITIONAL PAID IN CAPITAL
Issuance of 21,034,200 shares of Trenwick Group Ltd. to acquire
   minority interest in LaSalle Re Holdings' subsidiary and Trenwick
   Group Inc., net of acquisition costs                                         --     345,014
Issuance of 194,116 restricted common shares of Trenwick Group Ltd.          4,119          --
Issuance of 20,366 shares of Trenwick Group Ltd. and 21,532 common
   shares of LaSalle Re Holdings for cash under employee
   share purchase plans                                                        363         247
Issuance of 653 common shares of LaSalle Re Holdings under
   employee compensation plan                                                   --           7
Purchase and retirement of 14,609 common shares of Trenwick
   Group Ltd.                                                                 (311)         --
Cancellation of 5,134 restricted common shares                                 (70)         --
Equity put option premiums, net of applicable minority interest             (1,319)       (631)
Exercise of options to acquire shares of LaSalle Re Holdings
   and its subsidiary                                                           --         113
Compensation recognized under employee program                                 405         243
Change in minority interest                                                     --        (684)

DEFERRED COMPENSATION UNDER SHARE AWARD PLAN
Restricted common shares awarded on acquisition of Trenwick Group Inc.          --      (2,803)
Other restricted common shares awarded                                      (4,119)         --
Compensation expense recognized under employee share purchase
   plans, net of minority interest                                           1,121         208
Cancellation of restricted common shares                                        70          --
Change in minority interest                                                     --           2
Acquisition of minority interest                                                --         (73)

RETAINED EARNINGS
Net income (loss)                                                         (128,000)      7,655
LaSalle Re Holdings preferred share dividends
   prior to business combination                                                --      (4,923)
Trenwick Group Ltd. common share dividends, $0.12 per share                 (4,443)         --
Options/share repurchase                                                        --      (2,437)
Change in minority interest                                                     --        (176)

ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)
Other comprehensive income                                                  27,045       4,615
Change in minority interest                                                     --          24
Acquisition of minority interest                                                --        (891)
                                                                         ---------    --------
Common shareholders' equity, end of period                               $ 547,048    $632,470
                                                                         =========    ========
</TABLE>

        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 and Nine Months Ended September 30, 2001 and 2000

Note 1         Organization
Organization   Trenwick Group Ltd. was formed as a holding company in Bermuda to
and Basis      acquire two publicly held companies and the minority  interest in
of             a subsidiary  of one of those  companies.  That  transaction,  in
Presentation   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.

               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:

               o    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.;

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

               o    the minority interest in common shares and minority interest
                    in net income of LaSalle Re Limited have been  eliminated in
                    the three and nine months ended September 30, 2001; and

               o    the revenues and expenses of the former  Trenwick Group Inc.
                    were excluded from the three and nine months ended September
                    30, 2000 and  included  for the three and nine months  ended
                    September 30, 2001.

               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.  Refer to Note 5
               for a discussion  regarding  pending  changes in  accounting  for
               amortization of goodwill.

               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 the
               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


                                      - 5 -

<PAGE>

               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 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         The  following   tables  present   business   segment   financial
Segment        information  for Trenwick  Group Ltd. at  September  30, 2001 and
Information    December  31,  2000  and for the  three  and  nine  months  ended
               September 30, 2001 and 2000:

                                                       2001         2000
                                                    ----------   ----------
Total assets:
Worldwide property catastrophe reinsurance          $  682,812   $  557,401
U.S. treaty reinsurance                              1,652,430    1,759,678
International specialty insurance and reinsurance      513,941      473,612
Lloyd's syndicates:
   Continuing                                        1,262,156      808,483
   Runoff                                              110,248      157,627
U.S. specialty program insurance                       544,197      372,933
Unallocated                                            108,064       90,318
                                                    ----------   ----------
Total assets                                        $4,873,848   $4,220,052
                                                    ==========   ==========

<TABLE>
<CAPTION>
                                                Three Months         Nine Months
                                             ------------------   -------------------
                                               2001       2000      2001       2000
                                             --------   -------   --------   --------
<S>                                          <C>        <C>       <C>        <C>
Total revenues:
Worldwide property catastrophe reinsurance   $ 33,754   $29,283   $ 95,927   $ 90,404
U.S. treaty reinsurance                        82,137        --    235,350         --
International specialty insurance and
   reinsurance                                 46,953        --    140,302         --
Lloyd's syndicates:
   Continuing                                  78,471     2,352    220,942      5,033
   Runoff                                       1,550     4,977      9,052     13,164
U.S. specialty program insurance               24,944        --     67,666         --
Unallocated                                       754        --      5,223         --
                                             --------   -------   --------   --------
Total revenues                               $268,563   $36,612   $774,462   $108,601
                                             ========   =======   ========   ========
</TABLE>


                                      - 6 -

<PAGE>

<TABLE>
<CAPTION>
                                                  Three Months            Nine Months
                                             -------------------    --------------------
                                               2001       2000         2001        2000
                                             --------    -------    ---------    -------
<S>                                          <C>         <C>        <C>          <C>
Net income (loss):
Worldwide property catastrophe reinsurance   $(65,318)   $13,433    $ (38,211)   $14,606
U.S. treaty reinsurance                           309         --        7,805         --
International specialty insurance and
   reinsurance                                 (8,811)        --      (27,688)        --
Lloyd's syndicates:
   Continuing                                  (7,895)    (1,314)     (29,201)    (1,556)
   Runoff                                      (7,763)    (3,567)      (9,978)    (5,395)
U.S. specialty program insurance                1,872         --       (4,638)        --
Unallocated                                    (8,501)        --      (26,089)        --
                                             --------    -------    ---------    -------
Total net income (loss)                      $(96,107)   $ 8,552    $(128,000)   $ 7,655
                                             ========    =======    =========    =======
</TABLE>

               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  income
               taxes.


Note 3         The  following  table  sets  forth the  computation  of basic and
Earnings       diluted  earnings  per common share for the three and nine months
Per Share      ended September 30, 2001 and 2000:

<TABLE>
<CAPTION>
                                                             Three Months                 Nine Months
                                                      -------------------------   --------------------------
                                                          2001         2000          2001           2000
                                                      -----------   -----------   -----------    -----------
<S>                                                   <C>           <C>           <C>            <C>
INCOME (LOSS) AVAILABLE TO
COMMON SHAREHOLDERS
Net income (loss) available to common
   shareholders - basic                               $   (96,107)  $     6,911   $  (128,000)   $     2,732
Other minority interest in net income of subsidiary            --         1,641            --            839
                                                      -----------   -----------   -----------    -----------
Net income (loss) available to common
   shareholders - diluted                             $   (96,107)  $     9,008   $  (128,000)   $     3,571
                                                      ===========   ===========   ===========    ===========
WEIGHTED AVERAGE COMMON
   SHARES OUTSTANDING
Weighted average shares outstanding - basic            36,855,579    15,788,915    36,810,031     15,621,556
Net weighted average shares issuable (when
   dilutive) on exercise of stock options and
   warrants and on conversion of minority interest
   shares of subsidiary                                        --     4,746,676            --      5,054,525
                                                      -----------   -----------   -----------    -----------
Weighted average shares outstanding - diluted          36,855,579    20,535,591    36,810,031     20,676,081
                                                      ===========   ===========   ===========    ===========
Basic and diluted earnings (loss)
   per common share                                   $     (2.61)  $      0.44   $     (3.48)   $      0.17
                                                      ===========   ===========   ===========    ===========
</TABLE>


                                      - 7 -

<PAGE>

Note 4         The  components  of premiums  written and earned for the three
Underwriting   and nine months ended September 30, 2001 and 2000 are as follows:
Activities


                                Three Months             Nine Months
                            --------------------    ----------------------
                                2001       2000        2001         2000
                            ---------    -------    ----------    --------
Assumed premiums written    $ 225,439    $25,321    $  456,928    $122,567
Direct premiums written       142,104         --       603,794          --
                            ---------    -------    ----------    --------
Gross premiums written        367,543     25,321     1,060,722     122,567
Ceded premiums written       (124,709)    (9,053)     (312,273)    (30,440)
                            ---------    -------    ----------    --------
Net premiums written        $ 242,834    $16,268    $  748,449    $ 92,127
                            =========    =======    ==========    ========

                                Three Months             Nine Months
                            --------------------    ----------------------
                               2001       2000          2001        2000
                            ---------    -------    ----------    --------
Assumed premiums earned     $ 156,806    $35,285    $  409,144    $106,634
Direct premiums earned        190,813         --       537,802          --
                            ---------    -------    ----------    --------
Gross premiums earned         347,619     35,285       946,946     106,634
Ceded premiums earned        (107,758)    (8,534)     (279,738)    (23,895)
                            ---------    -------    ----------    --------
Net premiums earned         $ 239,862    $26,751    $  667,208    $ 82,739
                            =========    =======    ==========    ========

Note 5         During the quarter ended September 30, 2001,  Trenwick Group Ltd.
World Trade    incurred  significant  losses  related to the World Trade  Center
Center         terrorist  attack  and  related   disasters  on  September  11th.
Terrorist      Trenwick Group Ltd.'s incurred losses are based upon the estimate
Attack         of  its  ultimate  exposure  which  was  derived  from  a  manual
and Related    assessment  of its  outstanding  policies to determine  potential
Disasters      exposure,  and  market  share  analysis,  probable  maximum  loss
               analysis,  independent  risk  modeling  analysis  and cedent loss
               estimates.  Trenwick  Group  Ltd.'s  losses stem from  commercial
               property  damage,   which  includes  business   interruption  and
               incidental  workers'  compensation   coverage,   and  catastrophe
               aviation coverage. The estimated loss from the World Trade Center
               terrorist  attack and related  disasters  is  approximately  $404
               million before  reinsurance  recoveries.  Of the approximate $304
               million reinsurance recoverable,  95% are from reinsurers rated A
               or better by  Standard & Poor's or,  alternatively  by A.M.  Best
               Company.  Because of the scope and  uniqueness  of these  events,
               standard loss modeling and assessment  methodologies have limited
               relevance.  As a result,  the current level of losses  represents
               Trenwick  Group  Ltd.'s  best  estimate  at  this  time.  As more
               accurate information regarding the events becomes available, this
               estimate will be revised if necessary.


                                      - 8 -

<PAGE>

Note 6         In July 2001,  the Financial  Accounting  Standards  Board issued
Accounting     statements covering business  combinations and goodwill and other
Standards      intangible  assets,  which  are  required  to be  adopted  at the
               beginning of 2002. The business  combination  statement  requires
               that the purchase  method of  accounting be used for all business
               combinations initiated after September 30, 2001. The goodwill and
               other  intangible  assets  statement  changes  the  expensing  of
               goodwill  from  an  amortization  method  to  an  impairment-only
               approach.  Amortization of goodwill,  including goodwill recorded
               in past business  combinations,  will cease upon adoption of this
               statement.

               As of September  30, 2001,  Trenwick  Group Ltd. has  unamortized
               goodwill in the amount of  $42,086,  which will be subject to the
               transition  provisions of this  statement.  Amortization  expense
               related  to  goodwill  was $213 and $638 for the  three  and nine
               months ended September 30, 2001, respectively.

               Trenwick  Group Ltd.  has not  determined  the  effect  that this
               statement  will have on its  consolidated  financial  position or
               results of operations.

Note 7         On November 13, 2001,  Trenwick America  Corporation  amended its
Subsequent     credit  facility  to  provide  for the waiver  and  amendment  of
Event          covenants  related to the  repurchase  of preferred  shares,  the
               maintenance of a minimum interest coverage ratio, the maintenance
               of a  minimum  risk  based  capital  ratio for  Trenwick  America
               Corporation's  subsidiary,  Chartwell  Insurance  Company and the
               maintenance of a minimum  tangible net worth.  The amendment also
               increased the interest rate payable on  outstanding  indebtedness
               of Trenwick America Corporation to its lenders.


                                      - 9 -

<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 and nine months ended  September 30,
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,   The
Insurance  Corporation  of New York,  Dakota  Specialty  Insurance  Company  and
Chartwell Insurance Company.

All of Trenwick  Group  Ltd.'s  principal  operating  subsidiaries  are rated A-
(Excellent) by A.M. Best Company with a negative  outlook and have been assigned
a financial  strength rating of A- by Standard and Poor's with a stable outlook.
Chartwell  Managing Agents  Limited's  syndicates are not separately  rated, but
trade with their business  counterparties on the basis of the ratings of Lloyd's
which is currently rated "A-" (Excellent) by A.M. Best Company and currently 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


                                     - 10 -

<PAGE>

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.

Results of Operations - Three Months Ended September 30, 2001 and 2000

<TABLE>
<CAPTION>
                                                            2001          2000           Change
                                                         ---------   --------------     ---------
                                                                     (in thousands)
<S>                                                      <C>             <C>            <C>
Underwriting income (loss)                               $(120,851)      $ 1,942        $(122,793)
Net investment income                                       30,770         9,591           21,179
Interest expense and dividends on
   preferred shares of subsidiaries                         (9,601)         (304)          (9,297)
General and administrative expenses                         (3,845)         (424)          (3,421)
Other income                                                 1,233            --            1,233
                                                         ---------       -------        ---------
Pre-tax operating income (loss)                           (102,294)       10,805         (113,099)
Applicable income taxes (benefit)                           (8,820)           --           (8,820)
                                                         ---------       -------        ---------
Operating income (loss)                                    (93,474)       10,805         (104,279)
Minority interest in operating income of subsidiary             --        (2,097)           2,097
Net realized investment gains (losses), net of
   minority interest and income taxes                       (1,698)          270           (1,968)
Foreign currency losses, net of minority interest
   and income taxes                                           (935)         (426)            (509)
                                                         ---------       -------        ---------
Net income (loss)                                        $ (96,107)      $ 8,552        $(104,659)
                                                         =========       =======        =========
</TABLE>

The  operating  loss of $93.5  million in the 2001 quarter  represented a $104.3
million  decrease from  operating  income of $10.8 million  recorded in the 2000
quarter.  This  decrease  was  principally  the result of  abnormal  catastrophe
losses, primarily the September 11th, 2001 terrorist attacks, slightly offset by
increased  investment  income. The increase in investment income in 2001 was the
result  of the  increase  in the  size  of the  investment  portfolio  from  the
Trenwick/LaSalle  business  combination.  The decrease of $104.7  million in net
income in 2001 when compared to 2000 was the result of the decrease in operating
income due to abnormal  catastrophe  losses,  combined with  increased  realized
losses on investments and foreign currency losses in the 2001 quarter, offset in
part by the absence of a minority interest in 2001.

Underwriting income (loss)

The  underwriting  result  for the 2000  quarter  included  only the  results of
LaSalle Re  Holdings  Limited;  the  underwriting  result  for the 2001  quarter
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                           $ 239,862       $26,751      $ 213,111
                                              ---------       -------      ---------
Claims and claims expenses incurred             264,344        15,924        248,420
Acquisition costs and underwriting expenses      96,369         8,885         87,484
                                              ---------       -------      ---------
Total expenses                                  360,713        24,809        335,904
                                              ---------       -------      ---------
Net underwriting income (loss)                $(120,851)      $ 1,942      $(122,793)
                                              =========       =======      =========
Loss ratio                                        110.2%         59.5%          50.7%
Expense ratio                                      40.2%         33.2%           7.0%
Combined ratio                                    150.4%         92.7%          57.7%
</TABLE>


                                     - 11 -

<PAGE>

The underwriting loss of $120.9 million in the 2001 quarter represented a $122.8
million  decrease  compared to  underwriting  income of $1.9 million in the 2000
quarter.  The  increase  in  underwriting  loss was  primarily  due to  abnormal
catastrophe  losses in 2001,  which is  discussed  on page 12 under the  caption
"Claims and claims expenses."

The  increase in the  combined  ratio in the 2001  quarter  compared to the 2000
quarter resulted from abnormal  catastrophe losses which is discussed on page 12
under the caption  "Claims and claims  expenses,"  together  with a  significant
change in Trenwick Group Ltd.'s mix of business  following the  Trenwick/LaSalle
business  combination.  The increase in the expense ratio in the 2001 quarter as
compared to the 2000 quarter can be  principally  attributed to the inclusion of
Trenwick Group Inc.'s casualty business in the underwriting results in 2001.

Premiums written

Gross  premiums  written for the 2001  quarter were $367.5  million  compared to
$25.3 million for the 2000 quarter,  an increase of $342.2  million.  Details of
gross premiums written are provided below:

<TABLE>
<CAPTION>
                                                      2001           2000         Change
                                                    --------   --------------    --------
                                                               (in thousands)
<S>                                                 <C>            <C>           <C>
Worldwide property catastrophe reinsurance          $ 36,865       $15,871       $ 20,993
U.S. treaty reinsurance                               80,567            --         80,567
International specialty insurance and reinsurance     55,003            --         55,003
Lloyd's syndicates:
   Continuing                                        112,965         2,649        110,316
   Runoff                                              3,607         6,799         (3,193)
U.S. specialty program insurance                      78,536            --         78,536
                                                    --------       -------       --------
Gross premiums written                              $367,543       $25,321       $342,222
                                                    ========       =======       ========
</TABLE>

Worldwide property  catastrophe  reinsurance gross premium writings for the 2001
quarter  increased by $21.0  million,  or 132.3% from the 2000 quarter due to an
increase in rates on renewal business combined with an increase in new writings,
principally in the United States.

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
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 were $80.6 million,
$55.0 million and $78.5  million,  respectively,  for the third quarter of 2001.
Trenwick  Group  Ltd.  did  not  underwrite   these   businesses  prior  to  the
Trenwick/LaSalle business combination.

Premiums earned

Gross premiums earned for the 2001 quarter were $347.6 million compared to $35.3
million for the 2000 quarter, an increase of $312.3 million. Net premiums earned
for the 2001 quarter were


                                      - 12 -
<PAGE>

$239.9  million  compared to $26.8 million for the 2000 quarter,  an increase of
$213.1 million. Details of gross and net premiums earned are provided below.

                                      2001            2000          Change
                                    ---------    --------------   ---------
                                                 (in thousands)
Gross premiums written              $ 367,543       $25,321       $ 342,222
Change in gross unearned premiums     (19,924)        9,964         (29,888)
                                    ---------       -------       ---------
Gross premiums earned               $ 347,619       $35,285       $ 312,334
                                    ---------       -------       ---------
Gross premiums ceded                $(124,709)      $(9,053)      $(115,656)
Change in ceded unearned premiums      16,952           519          16,433
                                    ---------       -------       ---------
Ceded premiums earned                (107,757)       (8,534)        (99,223)
                                    ---------       -------       ---------
Net premiums earned                 $ 239,862       $26,751       $ 213,111
                                    =========       =======       =========

Gross premiums  ceded for the 2001 quarter were $124.7 million  compared to $9.1
million for the 2000  quarter.  The increase in gross  premiums  ceded of $115.7
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 2001 quarter were $239.9 million  compared to $26.8
million  for  the  2000  quarter.   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 2001 quarter were $264.3 million, an increase
of $248.4  million  compared to claims and claims  expenses of $15.9 million for
the 2000  quarter.  The increase in claims and claims  expenses in 2001 resulted
from  the  addition  of  business  acquired  in  the  Trenwick/LaSalle  business
combination as well as abnormal  catastrophe losses.  Third quarter 2001 results
include  abnormal  catastrophe  losses of  approximately  $100  million  pre-tax
related to the September 11th terrorist attacks.  The loss recorded in the third
quarter of 2001 is based upon  Trenwick  Group  Ltd.'s  estimate of its ultimate
exposure  derived  from a  manual  assessment  of its  outstanding  policies  to
determine  potential  exposure,  market share  analysis,  probable  maximum loss
analysis, independent risk modeling analysis and cedent loss estimates. Trenwick
Group  Ltd.'s  estimated  loss from the  September  11th  terrorist  attacks  is
approximately $404 million before  reinsurance  recoveries of approximately $304
million. Of the $304 million of reinsurance recoverable, 95% are from reinsurers
rated A or better by Standard & Poor's or,  alternatively,  A.M.  Best  Company.
Because of the scope and uniqueness of these events,  standard loss modeling and
assessment  methodologies  have  limited  relevance.  As a result,  the expected
Trenwick Group Ltd. losses represent Trenwick Group Ltd.'s best estimate at this
time. As more accurate  information  regarding the events becomes available,  we
will revise this estimate if necessary.

Acquisition costs and underwriting expenses

                                        2001          2000          Change
                                      -------    --------------    --------
                                                 (in thousands)
Policy acquisition costs              $75,017       $5,621         $69,396
Underwriting expenses                  21,352        3,264          18,088
                                      -------       ------         -------
Total acquisition costs and
   underwriting expenses              $96,369       $8,885         $87,484
                                      =======       ======         =======
Expense ratio                            40.2%        33.2%            7.0%
                                      =======       ======         =======


                                     - 13 -

<PAGE>

Total policy acquisition costs and underwriting  expenses,  for the 2001 quarter
increased by $87.5 million compared to the 2000 quarter. Total acquisition costs
and underwriting expenses as a percentage of net premiums earned, or the expense
ratio,  were 40.2% for 2001 compared to 33.2% for 2000.  This increase  resulted
mainly from the addition of 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.

Net Investment Income

<TABLE>
<CAPTION>
                                            2001           2000            Change
                                         ----------    --------------   -----------
                                                       (in thousands)
<S>                                      <C>              <C>            <C>
Average invested assets                  $2,228,875       $520,270       $1,708,605
Average annualized yields                      6.06%          6.93%           (0.87)%
                                         ----------       --------       ----------
Investment income - portfolio                33,782          9,019           24,763

Investment income - non-portfolio               724            801              (77)
Investment expenses:
   Interest expenses on funds withheld       (2,851)            --           (2,851)
   Other investment expenses                   (885)          (229)            (656)
                                         ----------       --------       ----------
Net investment income                    $   30,770       $  9,591       $   21,179
                                         ==========       ========       ==========
</TABLE>

Net  investment  income for the 2001 quarter was $30.8 million  compared to $9.6
million for the 2000 quarter.  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 $9.6
million for the 2001  quarter,  an increase of $9.3 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 23.3% of net income in the 2000 quarter.

Net realized  losses on  investments,  net of applicable  minority  interest and
income  taxes,  were $1.7  million  during  the 2001  quarter,  compared  to net
realized  gains of $0.3 million for the 2000 quarter.  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 $0.9 million for the 2001  quarter,  relatively
unchanged from foreign currency losses of $0.4 million for the 2000 quarter.


                                     - 14 -

<PAGE>

Results of Operations - Nine Months Ended September 30, 2001 and 2000

<TABLE>
<CAPTION>
                                                          2001          2000           Change
                                                       ---------    --------------   ---------
                                                                    (in thousands)
<S>                                                    <C>            <C>            <C>
Underwriting loss                                      $(225,333)     $(13,107)      $(212,226)
Net investment income                                     96,141        27,778          68,363
Interest expense and dividends on
   preferred shares of subsidiaries                       (30,054)         (915)        (29,139)
General and administrative expenses                      (11,449)       (2,841)         (8,608)
Other income                                               3,285            --           3,285
                                                       ---------      --------       ---------
Pre-tax operating income (loss)                         (167,410)       10,915        (178,325)
Applicable income taxes (benefit)                        (36,222)           --         (36,222)
                                                       ---------      --------       ---------
Operating income (loss)                                 (131,188)       10,915        (142,103)
Minority interest in operating income of subsidiary           --          (839)            839
Net realized investment gains (losses), net of
minority interest and income taxes                         7,886        (1,916)          9,802
Foreign currency losses, net of minority interest
   and income taxes                                       (1,964)          (53)         (1,911)
Restructuring costs, net of income taxes                  (2,734)         (452)         (2,282)
                                                       ---------      --------       ---------
Net (income) loss                                      $(128,000)     $  7,655       $(135,655)
                                                       =========      ========       =========
</TABLE>

The  operating  loss of $131.2  million  in 2001  represented  a $142.1  million
decrease  from the  operating  income of $10.9  million  recorded in 2000.  This
decrease  was  principally  the result of abnormal  catastrophe  losses and loss
reserve  strengthening  recorded  during  2001,  partially  offset by  increased
investment  income.  The increase in investment income in 2001 was the result of
the increase in the size of the investment  portfolio from the  Trenwick/LaSalle
business combination.  The decrease of $135.7 million in net income in 2001 when
compared to 2000 was the result of the decrease in operating income, an increase
in foreign  exchange  losses,  which are  discussed on page 18 under the caption
"Non-Operating Income and Expenses," offset in part by the absence of a minority
interest in 2001, and the increase in realized  investment gains. Net income for
2001 was also reduced by after tax restructuring  costs of $2.7 million recorded
in conjunction with management  changes effected at Trenwick Group Ltd.'s London
operations in the second quarter of 2001.

Underwriting income (loss)

The  underwriting  result for the nine months ended  September 30, 2000 included
only the results of LaSalle Re Holdings Limited; the underwriting result for the
nine months ended September 30, 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                           $ 667,208       $ 82,739       $ 584,469
                                              ---------       --------       ---------
Claims and claims expenses incurred             638,176         69,190         568,986
Acquisition costs and underwriting expenses     254,365         26,656         227,709
                                              ---------       --------       ---------
Total expenses                                  892,541         95,846         796,695
                                              ---------       --------       ---------
Net underwriting loss                         $(225,333)      $(13,107)      $(212,226)
                                              =========       ========       =========
Loss ratio                                         95.6%          83.6%           12.0%
Expense  ratio                                     38.1%          32.2%            5.9%
Combined  ratio                                   133.7%         115.8%           17.9%
</TABLE>


                                     - 15 -

<PAGE>

The  underwriting  loss of $225.3  million in 2001  represented a $212.2 million
increase  compared  to the  underwriting  loss of $13.1  million  in  2000.  The
increase in underwriting loss was primarily due to $116.2 million in catastrophe
losses  recorded  in the first  nine  months of 2001 as well as $76.7 of reserve
strengthening  in the second  quarter of 2001.  The majority of the  catastrophe
losses  recorded in the first nine months of 2001  resulted  from the  September
11th  terrorist  attacks.  During  the first nine  months 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 increase in the combined  ratio in 2001  compared to 2000 also resulted from
the significant catastrophe losses recorded in 2001. The increase in the expense
ratio in the nine months ended September 30, 2001 as compared to the nine months
ended  September 30, 2000  resulted from the inclusion of Trenwick  Group Inc.'s
casualty business in the underwriting results in 2001.

Premiums written

Gross premiums written for 2001 were $1.1 billion compared to $122.6 million for
2000, an increase of $938.2 million or 765%.  Details of gross premiums  written
are provided below:

<TABLE>
<CAPTION>
                                                       2001            2000          Change
                                                    ----------    -------------     --------
                                                                  (in thousands)
<S>                                                 <C>              <C>            <C>
Worldwide property catastrophe reinsurance          $  131,499       $ 97,907       $ 33,592
U.S. treaty reinsurance                                242,665             --        242,665
International specialty insurance and reinsurance      174,914             --        174,914
Lloyd's syndicates:
   Continuing                                          285,349          5,833        279,516
   Runoff                                                4,258         18,827        (14,569)
U.S. specialty program insurance                       222,037             --        222,037
                                                    ----------       --------       --------
Gross premiums written                              $1,060,722       $122,567       $938,155
                                                    ==========       ========       ========
</TABLE>

Worldwide  property  catastrophe  reinsurance  gross  premium  writings for 2001
increased  by $33.6  million  over 2000 due to an  increase  in rates on renewal
business  combined with an increase in new writings,  principally  in the United
States.

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
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 were $242.7 million,
$174.9 million and $222.0  million,  respectively,  for the first nine months of
2001.  Trenwick  Group Ltd. did not  underwrite  these  businesses  prior to the
Trenwick/LaSalle business combination.


                                     - 16 -

<PAGE>

Premiums earned

Gross premiums  earned for 2001 were $946.9  million  compared to $106.6 million
for 2000,  an  increase of $840.3  million.  Net  premiums  earned for 2001 were
$667.2  million  compared  to $82.7  million  for 2000,  an  increase  of $584.5
million. Details of gross and net premiums earned are provided below:

<TABLE>
<CAPTION>
                                             2001             2000           Change
                                          -----------    ---------------   ---------
                                                          (in thousands)
<S>                                       <C>              <C>             <C>
Gross premiums written                    $1,060,722       $122,567        $ 938,155
Change in gross unearned premiums           (113,776)       (15,933)         (97,843)
                                          ----------       --------        ---------
Gross premiums earned                        946,946        106,634          840,312
                                          ----------       --------        ---------
Gross premiums ceded                        (312,273)       (30,440)        (281,833)
Change in ceded unearned premiums             32,535          6,545           25,990
                                          ----------       --------        ---------
Ceded premiums earned                       (279,738)       (23,895)        (255,843)
                                          ----------       --------        ---------
Net premiums earned                       $  667,208       $ 82,739        $ 584,469
                                          ==========       ========        =========
</TABLE>

Gross premiums ceded for 2001 were $312.3 million  compared to $30.4 million for
the same period in 2000.  The increase in gross premiums ceded of $281.8 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 2001 were $667.2 million  compared to $82.7 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 nine months ended  September  30, 2001 were
$638.2  million,  an  increase of $569.0  million  compared to claims and claims
expenses of $69.2 million for 2000.  The increase in claims and claims  expenses
in 2001 resulted from the addition of business acquired in the  Trenwick/LaSalle
business  combination as well as to abnormal catastrophe losses and loss reserve
strengthening.  During the first nine months of 2001, claims and claims expenses
included $116.2 million of abnormal catastrophe losses,  including approximately
$100 million  related to the  September  11th,  2001  terrorist  attacks,  $10.5
million related to an accumulation of  catastrophic  losses  including  Tropical
Storm  Allison and storms  affecting  the Midwest  United  States,  $3.9 million
relating to the sinking of the Petrobras oil rig and $1.8 million related to the
September 2001 total Elf Petrofina fire in France.

The losses  related  to the  September  11th  terrorist  attacks  are based upon
Trenwick Group Ltd.'s  estimate of its ultimate  exposure  derived from a manual
assessment of its outstanding  policies to determine potential exposure,  market
share  analysis,  probable  maximum loss  analysis,  independent  risk  modeling
analysis and cedent loss  estimates.  Trenwick Group Ltd.'s  estimated loss from
the  September  11th  terrorist  attacks is  approximately  $404 million  before
reinsurance  recoveries  of  approximately  $304  million.  Of the $304  million
reinsurance  recoverable  generated by the September 11th terrorist attacks, 95%
are from  reinsurers  rated A or better by Standard & Poor's or,  alternatively,
A.M. Best Company. Because of the scope and uniqueness of these events, standard
loss modeling and assessment  methodologies have limited relevance. As a result,
the expected losses represent  Trenwick Group Ltd.'s best estimate at this time.
As more accurate  information  regarding the events becomes  available,  we will
revise this estimate if necessary.


                                     - 17 -

<PAGE>

Trenwick also  recorded  $76.7  million of reserve  strengthening  in the second
quarter of 2001.  This reserve  strengthening  included $17.4 million related to
the treaty reinsurance  segment's  directors and officer's  liability  business,
which  was  underwritten  prior to 2001,  $14.8  million  related  to one of the
specialty  program  insurance   segment's   programs,   $27.4  million  relating
principally to the Lloyd's segment  directors and officers  liability  business,
and $17.1 million  stemming from  deterioration  in discontinued  businesses and
reviews of the property  insurance and small premium liability business lines at
the international specialty insurance and reinsurance segment.

Acquisition costs and underwriting expenses

                                            2001          2000          Change
                                          --------    --------------   --------
                                                      (in thousands)
Policy acquisition costs                  $197,473       $16,269       $181,204
Underwriting expenses                       56,892        10,387         46,505
                                          --------       -------       --------
Total acquisition costs and
   underwriting expenses                  $254,365       $26,656       $227,709
                                          ========       =======       ========
Expense ratio                                 38.1%         32.2%           5.9%
                                          ========       =======       ========

Total policy  acquisition costs and underwriting  expenses for 2001 increased by
$227.7  million  compared  to 2000.  Total  acquisition  costs and  underwriting
expenses as a percentage  of net premiums  earned,  or the expense  ratio,  were
38.1% for 2001  compared to 32.2% for 2000.  The  increase in the 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.

Net Investment Income

<TABLE>
<CAPTION>
                                           2001             2000            Change
                                        ----------     --------------     ----------
                                                       (in thousands)
<S>                                     <C>               <C>             <C>
Average invested assets                 $2,236,609        $568,085        $1,668,524
Average annualized yields                     6.30%           6.21%            (0.09)%
                                        ----------        --------        ----------
Investment income - portfolio              105,711          26,464            79,247
Investment income - non-portfolio            1,938           1,993               (55)
Investment expense:
   Interest expense on funds withheld       (8,491)             --            (8,491)
   Other investment expenses                (3,017)           (679)           (2,338)
                                        ----------        --------        ----------
Net investment income                   $   96,141        $ 27,778        $   68,363
                                        ==========        ========        ==========
</TABLE>

Net investment  income for 2001 was $96.1 million  compared to $27.8 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 $8.5  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.


                                     - 18 -

<PAGE>

Interest Expense and Dividends on Preferred Shares of Subsidiaries

Interest  expense and dividends on preferred  shares of  subsidiaries  was $30.1
million for 2001, an increase of $29.1 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 shares 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 23.5% of net income in the first nine months of 2000.

Net realized  gains on  investments,  net of  applicable  minority  interest and
income taxes, were $7.9 million during 2001,  compared to net realized losses of
$1.9  million  for  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 $2.0  million  for 2001,  compared  to foreign
currency  losses of $0.1  million  for 2000 due to the  decline  in the value of
European  currencies which commenced in the latter portion of 2000,  principally
the British pound sterling, against the US dollar.

Liquidity and Capital Resources

As of September 30, 2001,  Trenwick Group Ltd.'s  consolidated  investments  and
cash  totaled  $2.3  billion,  an increase of $78.8  million from the balance at
December 31, 2000. The cost of Trenwick Group Ltd.'s equity  securities was $5.6
million  less than fair value at September  30, 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 $59.7 million at September 30, 2001 and by
$27.0 million at December 31, 2000.

As  of  September  30,  2001,   Trenwick   Group  Ltd.'s   consolidated   common
shareholders'  equity  totaled  $547.0  million,  or $14.84  per  common  share,
compared to $652.2  million,  or $17.79 per common  share at December  31, 2000.
During the nine months ended September 30, 2001, the unrealized  appreciation of
debt and equity  securities  increased by $29.6  million,  net of income tax, or
$0.80 per share.

Cash provided by Trenwick Group Ltd.'s  operating  activities for 2001 was $33.9
million compared to $6.2 million in the comparable  period of 2000. The increase
in cash flow from  operations  was due  primarily to an overall  increase in net
investment  income as a result of the increase in invested assets resulting from
the Trenwick/LaSalle business combination.

Net cash used in  financing  activities  during 2001  included  $4.4  million of
dividends paid to common  shareholders.  During 2000, net cash used in financing
activities included $4.9 million of dividends to preferred shareholders.

On September 26, 2001,  Trenwick  America  Corporation,  the primary  obligor on
Trenwick Group Ltd.'s revolving  credit  facility,  informed its lenders that it
had elected to convert its revolving  credit facility into a term loan facility.
Trenwick  America  Corporation  will  be  obligated  to  repay  the  outstanding
principal under the term loan facility in six month  installments  over the next
four years.  On November  13, 2001,  Trenwick  America  Corporation  amended its
credit facility to


                                     - 19 -

<PAGE>

provide for the waiver and amendment of covenants  related to the  repurchase of
preferred  shares,  the maintenance of a minimum  interest  coverage ratio,  the
maintenance  of  a  minimum  risk  based  capital  ratio  for  Trenwick  America
Corporation's  subsidiary,  Chartwell Insurance Company and the maintenance of a
minimum  tangible net worth.  The  amendment  also  increased  the interest rate
payable on  outstanding  indebtedness  of Trenwick  America  Corporation  to its
lenders.  As of November 13, 2001, the applicable interest rate on the term loan
under  the  credit  facility  was  4.8%  and the  applicable  commission  on the
outstanding letters of credit was 2.0%.

Trenwick  Group Ltd.  paid a dividend  of $0.04 per common  share in each of the
first three  quarters 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 first three quarters of 2001 and the first three
quarters of 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) increased to 30.2%
at September 30, 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

In July  2001,  the  Financial  Accounting  Standards  Board  issued  statements
covering business  combinations and goodwill and other intangible assets,  which
are required to be adopted at the  beginning of 2002.  The business  combination
statement  requires  that the  purchase  method  of  accounting  be used for all
business  combinations  initiated  after June 30,  2001.  The goodwill and other
intangible  assets  statement  changes  the  accounting  for  goodwill  from  an
amortization  method to an impairment-only  approach.  Amortization of goodwill,
including  goodwill  recorded  in past  business  combinations,  will cease upon
adoption of this  statement.  Operating  results  for the third  quarter of 2001
include  goodwill  amortization of $0.2 million or $0.01 per share.  The Company
has not  determined  the effect,  if any, that this  statement  will have on its
consolidated financial position or results of operations.

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


                                     - 20 -

<PAGE>

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:

o    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;

o    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;

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

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

o    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;

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

o    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;

o    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;

o    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;

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

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

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

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

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

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

o    The impact of mergers and acquisitions;

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

o    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


                                     - 21 -

<PAGE>

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.


                                     - 22 -

<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

     10.1 Second  Amendment  and  Waiver to the  Credit  Agreement,  dated as of
          November  13,  2001,  among  Trenwick  America  Corporation,  Trenwick
          Holdings  Limited,  the lending  institutions  from time to time party
          thereto,  First Union  National  Bank,  as  Syndication  Agent,  Fleet
          National Bank, as  Documentation  Agent,  and JP Morgan Chase Bank, as
          Administrative Agent.

     (b)  Reports on Form 8-K

     The  following  report  on Form 8-K was  filed  during  the  quarter  ended
     September 30, 2001:

     Date of Report                              Item Reported
     --------------                              -------------
     July 24, 2001                      Press  release,   dated  July  24,
                                        2001,   announcing  second  quarter
                                        earnings changes.


                                     - 23 -

<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: November 14, 2001             By:   /s/  James F. Billett, Jr.
                                          -----------------------------------
                                          Name:  James F. Billett, Jr.
                                          Title: Chairman, President and
                                                 Chief Executive Officer


Date: November 14, 2001             By:   /s/ Coleman D. Ross
                                          -----------------------------------
                                          Name:  Coleman D. Ross
                                          Title: Executive Vice President and
                                                 Chief Financial Officer


                                     - 24 -