Ocean Ltd.

, has reported a profit of $67.7 million for fiscal 1993 -- its first complete financial year.

Mid Ocean Ltd., which began operations in November 1992, principally reinsures property risks through its subsidiary Mid Ocean Reinsurance.

Therefore, results depend on the frequency and severity of catastrophes, such as hurricanes, windstorms, floods, earthquakes, fires and spells of severely cold weather.

For the year ending October 31, 1993, the company's wrote $257.5 million of premiums, and ended its first fiscal year with shareholders' equity of $769 million.

Mid Ocean had revenues in fiscal 1993 of $173 million. Net premiums earned were $138 million, and earnings per share were $2.60.

Net premiums written were $246.8 million.

Losses and loss expenses incurred amounted to $74.7 million during fiscal 1993, of which $65.4 million were for losses incurred but not reported.

Underwriting expenses were $31 million, consisting of $16 million acquisition costs, and operational expenses totaled $14.3 million.

Operational expenses include $2.8 million paid to XL Insurance Company and $3.4 million attributable to grants of ordinary shares to employees of the company.

Net investment income (excluding investment gains) was $23.2 million. The reinsurance industry received a well-needed respite during 1993 from major catastrophes.

Mr. Michael Butt, Mid Ocean president and CEO, described Mid Ocean's 1993 figures as "better than predicted''.

"Our reception in the world market was as good as had been hoped,'' he said.

"It confirms Mid Ocean's development and establishment as a major player in the worldwide catastrophe market.'' He described January rates as "solid'', and reiterated previous comments that, in the future, ratings would depend on loss experience.

"There have been two significant catastrophes experienced in the first few weeks, which implies demand will be supported,'' he said.

In the 1993 prospectus, Mr. Butt and Mr. Robert Newhouse, chairman of Mid Ocean Ltd., wrote: "We recognised at the outset that if we were successful, imitation and competition would be inevitable.

"The number of competitors recently established is, in fact, a testament to our success, and a confirmation that the window of opportunity that we perceived not only continues to exist, but has widened.'' Commenting on Mid Ocean's management team, Mr. Butt and Mr. Newhouse said: "It is our intention to recruit and develop Bermudian talent where possible.'' Mid Ocean raised $359 million in initial capital through a private placement in November 1992. The company issued an additional 14 million ordinary shares, and completed an initial public offering raising $324 million in August 1993.

The new capital, together with an increase in retained earnings from net income during the year, has increased the company's capital and surplus to $769.4 million.

The company's ratio of net premiums written to shareholders' equity was 0.32:1 at October 31, 1993.

Mid Ocean expects gross written premiums to increase in 1994 with a corresponding increase in the ratio of net premiums written to shareholders' equity.

The introduction stated that: "As a result of the additional funds from the initial public offering, we increased our investment managers from two to four, and broadened our investment guidelines to include Global Fixed Income securities to more adequately mirror the global nature of our premium and liability exposures''.

Mid Ocean's stock , which is traded on the New York Stock Exchange, closed unchanged at $25.50.

MID OCEAN LTD. 1993 RESULTS Profit $67.7 M Gross Premium Written $257.5 M Net Premiums Writtenq $246.8 M Net Premiums Earned $138 M Earnings per Share $2.60 Losses and loss expenses $74.7 M Underwriting Expenses $31 M.