for 1994 with almost half its profits -- $40.7 million -- coming in the fourth quarter.

The company's income for the year ending October 31 was an increase of 34.4 percent over the $67.

7 million in fiscal 1993.

Unaudited fourth quarter net income was $40.7 million -- an increase of 75.4 percent over the $23.2 million reported last year.

Mid Ocean Ltd., incorporated in the Cayman Islands, through its subsidiary, Bermuda-based Mid Ocean Reinsurance Company Ltd., provides property catastrophe and other reinsurance to insurers and reinsurers worldwide.

"We are very pleased that during our second year of operation, Mid Ocean Re has become a market of choice for so many of the world's major insurance companies,'' said president Mr. Michael Butt. "Despite the world's second largest insured loss and extremely difficult bond markets, we were able to report a net income of $91 million and this substantially further strengthens our balance sheet.

"Our credibility as one of the very strongest financial organisations in our industry is now accepted.'' For the 12 months of 1994, net operating income, excluding investments losses and gains, was $109.2 million, up 96 percent over last year's $55.8 million, according to a release from the company.

Gross written premiums were $358.6 million, compared to $257.5 million for 1993, a 39 percent increase.

Net premiums earned were $301 million, versus $138.2 million in 1993, an increase of 117.8 percent.

Net investment income was $51.5 million compared to $23.2 million in fiscal 1993, an increase of 122 percent.

Net losses on investments were $18.2 million compared to net gains of $11.9 million in the prior fiscal year.

Mid Ocean reported net operating income, excluding net gains and losses on investments, for the fourth quarter ending October 31, 1994, of $43.9 million compared to $22 million for the same period last year.

Net quarterly operating income per share, excluding net gains and losses on investments, was $1.17 compared with 58 cents for the same quarter in 1993.

Earnings per share for the quarter were $1.08 compared to 61 cents last year.

Revenue for the fourth quarter was $96.7 million, a 56 percent increase over the $61.9 million reported last year. Gross premiums written increased to $11.1 million from $10.5 million, 5.7 percent, while net earned premiums were $84 million, up 66 percent from $50.7 million.

Net investment income was $26 million in fourth quarter 1994 compared to $10 million a year ago, an increase of 160 percent.

"The increase in net investment income can be attributed to a large investment base in 1994 and attaining a 6.45 percent yield compared to 5.14 percent in the previous year's fourth quarter,'' the company said.

Meanwhile, the company also reported net income for this year's fourth quarter included $22.6 million more for the Northridge earthquake, in addition to the $72.4 million provided for the earthquake in the first two quarters.

At fiscal year end, the company's Northridge earthquake provision of $95 million consisted of $64 million of paid and outstanding claims and $31 million in claims incurred but not yet reported (IBNR).

The second quarter provision was made when total expected loss was estimated at $6 billion to $6.5 billion but is now in the $10 billion range.

The additional $22.6 million seemed prudent given this increase, the company added.

Total assets at October 31, 1994 were $1.22 billion, up from $960 million at the end of fiscal 1993, an increase of 27.1 percent.

Shareholders equity was $804.6 million at October 31, 1994, up 4.6 percent from $769.4 million at the end of fiscal 1993. Book value per share was $21.68 at year's end, compared to $20.82 per share at fiscal 1993 end.