financial status Bermuda-registered Nobel Insurance Ltd. made a profit of $397,000, or eight cents per share, for the second quarter ended June 30, compared to the $1.96 million earned in the same period last year.

For the first six months of 1997 the company had net income of $1.61 million compared to $3.37 million in 1996. Nobel, whose operating subsidiary is based in Texas, attributed the 52 percent fall in profits to "adverse development'' in the long-haul trucking class of its business.

As a Bermuda-registered entity, Nobel is technically in run-off here to pay claims transferred from Cigna Corp. when a group of explosives manufacturers set up the company in 1991.

Nobel underwrites property and casualty insurance for high-risk, specialised industries. Its principal customers are distributors, manufacturers and users of explosives, and the specialty commercial trucking, miscellaneous bonds, propane and low-value dwelling markets.

Nobel treasurer Thomas Nimmo said the company had not yet decided to do with the Bermuda entity once the run-off is completed. The company has $10 million in liabilites and $15 million in assets to pay the claims, he said. It has paid out $92 million in claims since its formation.

Mr. Nimmo said the incorporation of the company in Bermuda costs Nobel about $300,000 a year, including payments to Bank of N.T. Butterfield and Son, and the local agent. Company directors and officers were also required to meet in Bermuda for the annual general meeting, and this was an inconvenience for a Texas-based operation.

"We are trying to think of what to do--whether to remain a Bermuda company, or redomesticate,'' Mr. Nimmo said. "We have an open mind.'' However Nobel's structure won't be changed until its board of directors decide whether to sell the company or not. Nobel's board recently hired Donaldson, Lufkin & Jenrette Inc. to help look for potential suitors.

The Khimji Family Partnership II Ltd. is one such potential purchaser. The partnership bought a 6.7 percent stake in the company this year, and has stated that it might seek control of Nobel either alone or as part of a group.

In the report on its most recent financial results Nobel stated that it was going to implement significant rate increases, underwriting changes, expense reductions and additional reinsurance protection to protect itself from further losses in its long-haul trucking class of business.

The compay had to add $3.2 million in reserves during the current fiscal year for losses in its long-haul trucking line of business.

The company earned net premiums of $8.4 million in the second quarter 1997, and $17.1 million for the six month period, compared to $14.2 million in the second quarter 1996 and $27.5 million in the first six months of 1996.

The company stated the decrease in net premiums was due to a "significant'' increase in premiums ceded as a result of reinsurance programme changes, primarily in the commercial casualty division.