reported a profit of $10.45 million for fiscal 1992 -- 84 percent down on the year before.

The company made a net underwriting loss of $224.3 million, slightly more than double that of the previous year.

This was as largely as a result of losses and loss expenses being increased by 51.4 percent from $306 million to $463.3 million.

Loss reserves were increased as a result of changes in the company's reserving policy.

For fiscal 1992, ACE adopted an IBNR reserving policy setting aside a fixed percentage of earned premiums to cover expected losses.

ACE has chosen to apply the same methodology retrospectively for all fiscal years since its inception.

Premiums written increased by 26 percent to $325 million and net premiums earned rose by 16 percent to $274 million.

ACE added 56 new excess liability accounts and 32 directors and officers liability accounts during the 12 months to September 30.

"This resulted in more new business than in any year since 1986, the first year of operations,'' said chairman and CEO Mr. Walter A. Scott.

He attributed this growth partly to the instability and shrinkage of capacity in the London and Scandinavian markets.

A large part was also played by the company focussing on developing new programmes directed towards non-US corporations.

Approximately one-third of ACE's new excess liability accounts were non-US based corporations.

Investment income and realised gains rose by 38.2 percent to $246 million, compared with $178 million in 1991. The company received a 12.7 percent return on its total investment portfolio.

ACE's net worth at the end of September, 1992 was $1.1 billion, according to the results. Fully diluted net asset value was $178 per ordinary share compared with $173 per share at the same time last year.

In September, prior to the close of the fiscal year, ACE introduced Executive Compensation Insurance, a new product that insures the non-ERISA guaranteed portion of pension payments and deferred vested compensation programmes.

ACE Ltd. and its subsidiaries are the world's leading writers of high level excess liability and directors and officers liability insurance.

The company offers excess liability limits of $200 million and D&O limits of $50 million.

ACE is also responsible for the management and underwriting of Corporate Officers and Directors Assurance Ltd. (CODA), which has annual earned premium in excess of $32 million and has capital and surplus of more than $210 million.

ACE LTD'S 1992 RESULTS PROFIT $10.45 M PREMIUMS WRITTEN $325.4 M NET PREMIUMS EARNED $274 M LOSSES AND LOSS EXPENSES ($463.3 M) UNDERWRITING LOSS ($224.3 M) ASSETS $2 B LIABILITIES $917M RETAINED EARNINGS $566.5 M Mr. Walter Scott.