Ltd.'s (MRM) half-year results, the company said yesterday.

For the six months ended June 30, MRM's net income was $18.2 million compared to $15.2 million for the same period a year earlier, an increase of 20 percent. Second quarter profit rose 11 percent to just over $9 million compared to $8.2 million.

Operating income over the first half was $18.6 million compared to $15.2 million, up 22 percent. Second quarter operating income was $9.5 million and $7.8 million, also a 22 percent increase.

The results also reflect the acquisition of Hemisphere Group through an accounting procedure called pooling of interests which combines the balance sheets of both companies over the six month period.

MRM recently acquired Hemisphere for $11.6 million. The deal involved the issuance of 348,293 new MRM shares.

On Hemisphere's financial impact, MRM chairman and CEO Robert Mulderig said the company is not currently a large piece of MRM overall though it helped the results.

New account sales increased 38 percent for the first half of 1996 compared to the first six months of 1995 "due to continued demand for the company's `alternative market' services especially for our programme business,'' Mr.

Mulderig and MRM president John Kessock said in a joint statement.

Renewal rates were adversely affected in the quarter by increased competition from traditional insurers for corporate accounts.

Though sales were ahead of expectations, renewals were below expectations, Mr.

Mulderig said.

"The US commercial casualty market is (currently) extremely soft and extremely competitive,'' he said.

Legion Insurance Company and Legion Indemnity, MRM's policy-issuing subsidiaries, added 55 new accounts during the first six months, 24 in second quarter, compared to 40 and 23 in 1995. Their renewal rate was 71 percent in first half and 66 percent in second quarter compared to 81 percent and 80 percent in 1995.

Overall, Legion netted 22 new accounts during first half equaling the previous year's six-month figure.

On risk management fees, MRM reported an increase of 27 percent to $39.5 million for the six months and an increase of 24 percent to $19.8 million in second quarter compared to $31 million and $15.9 million.

MRM also said the company's captive management and brokerage entities continue to perform well, contributing $5 million in first half, an increase of 31 percent over 1995.

Notable among results from these operations were half-year fees generated from Shoreline Mutual Management (Bermuda) Ltd., up 57 percent from the previous year's six-month period.

Shoreline fees were about $500,000 and $1.1 million in second quarter and six months respectively compared to about $400,000 and about $700,000 respectively in 1995.

Shoreline is a Bermuda protection & indemnity (P&I) club formed to provide ship owners with excess pollution liability coverage and evidence of financial responsibility needed to obtain US Coast Guard certificates of financial responsibility for vessels in US waters.

MRM also reported six month and second quarter investment income of $10.6 million and $5.4 million respectively compared to $7.6 million and $3.7 million.

Revenues for the six months were $77.3 million compared to $63.6 million.

Corresponding quarter figures were $40.6 million and $33.8 million.

Half-year expenses were $54.3 million while quarter expenses were $29.6 million compared to $43.6 million and $23.3 million.

The operating expenses increase was attributed to the inclusion on Professional Underwriters Corp. which added $2.2 million, or 13 percent, to half year operating expenses and $1.1 million or 12 percent to second quarter operating expenses.

Six-month gross premiums written were up 17 percent to $157.5 million while second quarter gross premiums written increased 43 percent to $100.2 million.