down 30.5 percent compared to year earlier three month results.

Net income was adversely affected by a realised investment loss as well as declines in net premiums earned and affiliate earnings.

But net investment income over the three months was improved and losses were lower.

For the quarter ended August 31, EXEL's net income was $64.5 million, or 72 cents per share, compared to $92.9 million, or 91 cents per share.

Despite the quarter profit decline, the company's nine month results are 47.6 percent higher than last year's.

For the three quarters, net income was $360.6 million, or $3.88 per share, compared to $244.3 million, or $2.31 per share.

"These are satisfactory results in a competitive market,'' EXEL president and CEO Brian O'Hara said. "We have recently taken steps to build on the strength of our organisation through the strategic acquisition of two smaller EXEL profit declines in third quarter Insurance Association and Railroad Association Insurance Ltd.) and have added resources to improve our investment returns.'' Quarter net operating income, excluding net realised investment results, was $69.1 million, or 77 cents per share, compared to $66.7 million, or 65 cents per share.

Nine month net operating income was $213 million, or $2.29 per share, compared to $210.1 million, or $1.99 per share. All per share numbers have been adjusted for the one-for-one stock dividend in July, 1996.

Quarter revenues were $183.3 million compared to $222.9 million, down 17.8 percent.

For the nine months, revenues were $726.2 million compared to $624.4 million.

Quarter losses and loss expenses were $97.9 million compared to $109.2 million. Corresponding nine month figures were $305.7 million and $317.8 million.

Gross premiums written for third quarter were $189.5 million compared to $248.6 million in the same quarter a year earlier.

After adjusting for premiums related to multi-year contracts, gross premiums written were $172.6 million versus $174.3 million earlier.

For the nine months, gross premiums written were $568.8 million compared to $498.7 million. After adjusting for premiums relating to multi-year contracts and loss surcharges, gross premiums written were $456 million for the nine months compared to $436.5 million for the same period a year earlier.

Net earned premiums for the quarter were $124.5 million compared with prior year's third quarter of $139.2 million. For the nine months, net earned premium was $386.7 compared to $405.1 million in 1995. After adjusting for premiums ceded under the quota share treaty, net earned premiums for third quarter and nine months were $140 million and $435.6 million.

Net investment income, excluding realised gains, was $50.3 million in third quarter compared to $39.1 million.

Third quarter 1995 investment income was reduced by $12.2 million due to unrealised currency losses. Realised investment losses in the third quarter of 1996 were $4.6 million compared to gains of $26.2 million earlier.

For the nine months, net investment income was $148.3 million compared to $146.1 million. After adjusting for unrealised currency losses of $8 million in 1995, net investment income for the nine months was $154.1 million.

Realised investment gains for the nine months was $147.7 million compared to $34.2 million. There were no unrealised currency adjustments in either 1996 period.

In the third quarter, the company earned $13.1 million from its equity in the net earnings of affiliate Mid Ocean Ltd., compared with $18.4 million earlier.

Nine month figures were $43.5 million and $39 million.

At a glance (All figures in millions except per-share amounts) Quarter Aug31 Aug31 Pct.

ended 1996 1995 Chg.

Profit(Loss) $64.5 $92.9 -30.5% EPS $0.72 $0.91 -30.5% Revenue $183.3 222.9 -17.8%