Mutual Risk Management Ltd. reported yesterday first quarter earnings rose 24 percent to $18.8 million or 44 cents per share.

But recent acquisitions, personnel growth and the cost of increased business saw operating expenses swell 25 percent to $29.1 million for the quarter from $23.3 million in the same period last year.

And total expenses also blew out from $55 million to $71.1 million for the quarter.

Net investment income fell ten percent to $7.2 million from the strong investment performance of $8.1 million achieved in 1998's first three months.

Investment yields also dropped to 6.7 percent this quarter compared to 7.9 percent in the same period last year. A joint statement from chairman and CEO Robert Mulderig and president John Kessock praised the "record levels of both fees and operating income'' achieved in the quarter. Fees for the company's programme business -- which involves replacing traditional insurers and acting as a conduit between producers of specialty books of business and reinsurers -- grew by 41 percent to $22.9 million.

And fees brought in by the company's newest business segment, financial services, which provides administrative services to offshore mutual funds and other companies -- increased 52 percent to $4.4 million. This was largely as a result of an increase in the number of mutual funds under administration from 150 to 205.

The statement from the pair said operating income increased 21 percent to $18.5 million for the first quarter, or 40 cents per common share on a diluted basis, an 18 percent increase.

"And return on equity met our expectations at 21 percent for the first three months of 1999.''