increase in third quarter profit.

For the quarter ended September 30, profit rose to $7.9 million compared to $6.3 million reported for the same period a year ago.

And for the nine months ended September 30, profit increased 26 percent to $22.6 million compared to $18 million in 1994, MRM said.

"The results for the third quarter were excellent producing a 24 percent increase in risk management fees and a 23 percent increase in operating income over the 1994 third quarter reflecting strong continued demand for the companies alternative market services,'' said MRM president and CEO Mr. Robert Mulderig and MRM president Mr. John Kessock Jr., in a release from the company.

Risk management fees increased 24 percent to $15.7 million for third quarter and 20 percent to $44.7 million for the nine months compared to $12.7 million and $37.1 million for the same periods in 1994.

Operating income was $7.7 million compared to $6.3 million for the same quarter a year ago.

Nine month operating income was $22.5 million compared to $18.2 million earlier.

Gross premiums written decreased five percent to $84.1 million and increased two percent to $219.1 million for the nine months compared to $88.4 million and $214.4 million.

Third quarter premiums earned decreased to $15.3 million from $18.1 million while nine month figures were $40.6 million and $48.9 million respectively.

"The decreases in premiums reflect a continued increase in the use of large deductible policies which were introduced by the company in California during 1995 and lower premiums in California due to rate reductions, but are offset by corresponding reductions in total insurance costs which decreased by 15 and 16 percent respectively,'' the company said.

MRM's captive management operations and brokerage companies continued to perform well in the third quarter and nine month periods contributing risk management fees of $2.2 million and $6 million compared to $2.1 million and $2.9 million last year and pre-tax income of $.9 million and $2.3 million compared to $.4 million and $.7 million last year.

These operations included fees of $.4 million and $1.1. million for third quarter and nine months 1995 from Shoreline Mutual Management (Bermuda) Ltd.