reported second quarter profits of $60.6 million.

Though the result represents a drop in profits of $1 million compared to the same period in 1991, XL executive vice president and chief financial officer Mr. Brian Walford said the company was pleased with the performance.

"Last year was a very good market in terms of yield and ability,'' Mr.

Walford said, adding that 1992's flat market conditions are expected to continue through the year.

Mr. Walford said the company had been able to maintain its level of business by not significantly lifting or dropping prices. "We have a high retention rate,'' he said. "We have clients who have been with us for the five years we've been in business. We told them we wouldn't fluctuate our prices.'' He said the company is seeing some new business, adding that it plans to increase prices slightly.

Net income for the first six months of 1992 was $132.8 million, or $2.32 per share, compared to $136 million, or $2.52 per share during the same period last year.

Gross premiums written for the three month period were $92.3 million, bringing the total for the first six months of 1992 to $211.3 million, up nearly $24 million, or 12 percent, from the same period in 1991.

Net investment income during the second quarter, excluding realised gains, was $44 million, down 1.3 percent from 1991. Total investment income for the first six months was up $3 million to $86.5 million.

Realised gains, however, dropped $3.3 million to $8.9 million during the second quarter compared to the same period in 1991, and $8.5 million to $32.3 million for the first half of 1992, compared to the first six months of 1991.

Operating earnings, which exclude realised investment gains, totalled $51.8 million compared to $49.5 million during the second quarter of 1991. Operating earnings per share were unchanged at 91 cents compared to the same three month period in 1991.

Net income per share dropped to $1.07 during the period compared to the same period the previous year.

Losses and loss expenses were $78.5 million for the quarter, up from $76.2 million for the same three months in 1991, bringing the total for the year to date to $152 million compared to $149.3 million during the first six months of 1991.

The company's combined ratio for the first six months of this year dropped to 92.7 percent from 93.4 percent for the same period in 1991, while the loss and loss expense ratio dropped only slightly to 76.9 percent from 77.1 percent for the same period.

EXEL now has total investments of $2.4 billion, cash and cash equivalents totalling $194.9 million, total assets of $2.7 billion, and unpaid losses of $1 billion. Shareholders' equity is $1.5 billion.