quarter earnings up to $94.5 million ($1.76 per share), a 400 percent improvement over last year's second quarter of $18.9 million ($0.35 per share).

The significant return boosted net income for the first six months of 1995 up to $151.4 million ($2.81 a share), compared to 1994's first six months.

Excluding realised investment results, net operating income was $79.6 million ($1.48 per share) for the quarter ending May 31, 1995, up from $51.6 million ($0.95 per share) in the second quarter of 1994. That represents a 56 percent increase in earnings per share.

Net operating income for the six month period was $143.4 million, or $2.67 per share, an increase of 31 percent per share from $111.2 million, or $2.04 per share, in the first six months of 1994.

But president and CEO of EXEL Ltd., Mr. Brian O'Hara, commented: "Although our underwriting results are satisfactory, market conditions are increasingly competitive and are likely to remain soft for some time.

"The increases in both the second quarter and first six months reflect improved investment results. A year ago our results were significantly impacted by realised losses and lower interest rates.'' Second quarter revenues were up 57 percent to $222.4 million, compared to $141.8 million a year ago. Total assets at May 31 were $4.4 billion, a half a billion dollars better than six months previous.

Shareholders' equity was $2.1 billion at the end of May, compared with $1.7 billion at the end of November. Fully diluted book value per share at May 31 was $38.41, as opposed to $31.45 at November 30.

Gross premiums written for the second quarter actually decreased by eight percent to $112 million from $122 million in the same quarter last year. After adjusting for premiums relating to multi-year contracts, second quarter gross premiums written were up three percent to $109.8 million.

For the six month period, gross premiums written were $250.1 million, compared with $325.2 million in 1994. After adjusting for premiums relating to multi-year contracts and loss surcharges, gross premiums written were $262.2 million in the first six months of 1995, compared with $249 million during the same period a year before.

Second quarter net earned premiums were up six percent to $135.1 million, six month net earned premiums were pretty much the same at $265.9 million. After adjusting for the loss surcharges and the reinsurance clash premium for the six month period in 1994, net earned premiums were $258.3 million. There were no such adjustments in this year's six month period. Second quarter net investment income, excluding realised gains, improved from $42.9 million to $56.8 million. Realised investment income was $14.9 million, compared with losses of $12.7 million a year ago. For the reporting period, EXEL earned $15.5 million from its equity in the net earnings of its affiliate, Mid Ocean.