profits in 1993, the company reported yesterday.

Bermuda-based OIL, a mutual insurer owned by 48 petroleum companies, had net income of $90.1 million compared to a 1992 loss of $80,862.

Due to changes in accounting methods for premiums required by United States authorities, 1992's results were restated in the report.

Underwriting income improved from a loss of $84.2 million to a profit of $106.2 million.

That was largely due to a massive reduction in losses and loss expenses incurred from $272.7 million in 1992 to $68.5 million in 1993.

Net premiums written and earned fell from $188.6 million to $175 million as total premiums written fell from $227.5 million to $192.5 million.

The company said it received just five claims for losses which were reserved for $8 million, the second best year for losses in OIL's history.

The company's loss to premium ratio fell from 144.6 percent in 1992 to 39.2 percent in 1993 and its combined ratio fell from 146.1 percent to 41.1 percent.

Total capital and surplus for the year was a record $1.12 billion, up from $822.3 million in 1992.

Total assets also reached a record level of $1.82 billion compared to $1.68 billion in 1992.

Reserves for outstanding losses and contingencies fell from $404.2 million to $320.2 million.

Assets increased in part as a result of an increase in the assets of the company's wholly owned investment subsidiary, Oil Investment Corporation Ltd.

OICL increased the market value of its investments from $1.42 billion to $1.63 billion and net assets increased from $1.44 billion to $1.64 billion.

Senior vice president Mr. Douglas Kline said the recent volatility of world markets meant he did not anticipate the same return on investments in 1994.

But he noted the company was in a strong position, having made high gains in total capital for three straight years.