ending March 31, up by more than 31 percent to $5.8 million, with earnings per share rising from 33 cents for the same period last year to 44 cents per share.

In a joint statement, chairman and CEO Mr. Robert A. Mulderig and president John Kessock Jr. said: "The operating results for the first quarter were excellent, producing record levels of fees and net income.

"However, during the first quarter the company, as expected, experienced some softening of the demand for its Alternative Market services for workers' compensation programmes.

"This was primarily a result of workers compensation reform and increased competition from traditional insurers in a number of states, especially California.'' The company's policy issuing subsidiary, Legion Insurance Company, added 13 new programmes during the first quarter of 1994, compared to 17 in 1993.

Legion's renewal rate increased to 91 percent (31 out of 34) in the first quarter of 1994, compared to 77 percent (17 out of 22) in the first quarter of 1993.

Gross premiums written increased 30 percent to $60 million for the first quarter compared to $46.3 million, resulting from increased premium volume on renewed business and an increase in audit premiums from prior years on certain programmes.

Risk management fees increased 23 percent to $11.9 million for the first quarter, up from $9.6 million in 1993.

The pre-tax profit margin on the risk management fees increased to 48 per cent for the period, as opposed to 47 percent for the corresponding period in 1993.

Investment income was up 31 percent to $2.8 million as a result of an increase in invested assets and marginally higher interest rates.

Operating expenses were up by 20 percent to $6.2 million, because of increased personnel and other expenses as a result of more business.

The company will acquire all outstanding shares in the Worksafe Group Incorporated, a California group that helps companies cut down on their worker compensation losses. Worksafe's services are to be offered to California clients. Worksafe Group's estimated revenues for 1994 are approximately $860,000.

Mutual Risk Management Ltd. (MM) common shares were unchanged at $25 on the New York Stock Exchange yesterday.