Realised investment gains helped push EXEL Ltd.'s year profit to just under half a billion dollars, the Bermuda-based excess liability insurer said in year and fourth quarter results released yesterday.

EXEL's realised investment gains -- gains from sale or disposal of securities -- were $206.2 million for the year ended November 30 compared to $49.8 million for the prior fiscal year. In fourth quarter, realised investment gains were $58.6 million compared to $15.6 million in fourth quarter 1995.

The increase reflects growth in world equity markets and EXEL's desire to lock in those gains.

There is a strong view that booming equity markets are due for a correction downward.

EXEL's year net investment income -- income from securities and other nonbusiness investments such as dividends and interest -- was $198.6 million compared to $200.1 million in 1995. Fourth quarter figures were $50.3 million and $54.1 million.

For the year, EXEL's profit rose 49 percent to $494.3 million, or $5.39 per share, compared to 1995's $332.8 million, or $3.22 per share.

Year revenues were $982 million in 1996, up 14 percent from the $859 million in 1995.

Fourth quarter net income rose 51.1 percent to $133.7 million, or $1.52 per share, compared to $88.5 million, or 92 cents per share, earlier.

Fourth quarter revenues were $255.7 million compared to $234.7 million.

"It is fitting that our earnings on both operating and net income basis reached record levels in 1996,'' EXEL president and CEO Brian O'Hara said.

"The company completed its tenth year of operations in 1996, retaining 90 percent of its customers, having paid more than $1 billion of claims over the period and forging new alliances to build the organisation for even greater success in the years ahead.'' Year net operating income rose 15 percent to $288.1 million, or $3.14 per share, compared to $283 million, or $2.74 per share.

Quarter net operating income, excluding realised investment results, rose to $75.1 million, or 85 cents per share, compared to $72.9 million, or 76 cents per share.

EXEL also said that year gross premiums, after adjustments, were $590.2 million compared to $582 million.

After adjustments, fourth quarter gross premiums written $134.2 million compared to $145.5 million.

For the year, adjusted net premiums earned were $583.1 million compared to $550.8 million. Corresponding quarter figures were $147.5 million and $145.7 million.

In fourth quarter, the company earned $15.8 million from equity in net earnings of affiliates, compared to $12 million in 1995 fourth quarter. Year figures were $59.2 million and $51.1 million.

Year combined ratio was 93.6 percent in 1996 compared to 94 percent. Loss ratios were 78.3 and 79 in 1996 and 1995 while underwriting ratios were 15.3 and 15.

Fourth quarter combined ratio was 92.5 with loss ratio 76 and underwriting expense ratio being 16.5. Year earlier corresponding ratios were 95.3, 80.5 and 14.8.

During the fiscal year, the company repurchased 8.2 million shares and has authorisation to repurchase up to 2.8 million more.

Assets at November 30 were $5.03 billion, compared to $4.72 billion a year earlier. At November 30, shareholders' equity was $2.12 billion compared to $1.92 billion.

Fully diluted book value per share at November 30 was $24.21 compared to $21.10.

BRIAN O'HARA -- Earnings at record levels.