Bermuda-based reinsurer, Mid Ocean Ltd., has declared net income of $245 million for the year to October 31, a 16 percent increase over the year before.

The results were announced amid stated concern from the company's chief executive that some companies may be engaging in less than disciplined underwriting.

Mid Ocean Ltd. is the parent to Mid Ocean Reinsurance Co. Ltd. and The Brockbank Group Plc, which provide a broad range of reinsurance and insurance products on a global basis.

Earnings per share for the year were $6.46, compared to $5.75 per share in the prior year.

Total revenues rose 15 percent to $619.4 million, as gross written premiums declined one percent to $560.5 million. Net premiums earned rose 12 percent to $486.7 million.

The combined ratio was 73.1 percent, compared to 72.6 percent the year before.

Net losses and loss expenses incurred were $216,171,000, compared to $211,888,000 for the year ending October 1996.

Net investment income rose more than 24 percent to $103.4 million for 1997, compared to $83.2 million for the 1996 year. Net gains on investments were $9.6 million, compared to $2.1 million for the prior year.

Total assets at October 31 were 12 percent higher year over year at $2.27 billion. Shareholders' equity had risen 23 percent in the 12 month period to $1.37 billion. Fully diluted book value per share rose from $30.88 to $35.14.

President and CEO, Michael A. Butt, commented, "Our results during 1997 exceeded expectations, particularly in light of deteriorating market conditions in virtually all segments of the business we underwrite.

"Our 1997 financial results benefited from very low loss activity, substantial loss reserve releases from prior year's accounts, as well as cyclically high profit commissions from The Brockbank managing agency activities.

"We see signs of a return to the same underwriting behaviour that led to the problems of just a few years ago. Despite the extra pressures this environment creates, our company intends to maintain its underwriting disciplines.

"Having said this, we remain confident that our company has long term structural and competitive advantages that will serve us well in this cyclical downturn. I am also pleased that our board announced an increase in our dividend reinforcing this confidence.'' Fourth quarter net income increased 14 percent to $64.6 million, and earnings per share rose from $1.54 to $1.65.

Total revenues for the fourth quarter were up seven percent to $160.7 million.

Gross written premiums were also seven percent ahead of the fourth quarter of last year to $48.7 million, while net premiums earned rose two percent to $119.8 million.

Net investment income for the quarter rose 17 percent to $27.2 million, as net investment gains improved from $3.3 million to $5.2 million.