largely responsible for an operational loss of $124 million for fiscal 1992 which Bermuda-based OIL Insurance reported yesterday.

After interest and dividend income is taken into account, OIL's net loss for the 12 months to December 31, 1992, came to $88.56 million, compared with a profit of 35.43 million the year before.

OIL's president and CEO, Mr. Doyle Stephens, said: "This is nothing to be alarmed about. It is the nature of our business. The company is just as strong today as the day before that refinery loss occurred.

"I don't view this $200 million loss as any more serious as having two $100 million losses and there have been several of those in the history of the company.'' He added: "A portion of the $200 million loss will be recoverable from reinsurance; however, the remaining cost has more than offset gains resulting from increased premium income and lower operating expenses.'' OIL provides coverage for, and is owned by, 50 oil companies in the United States, Canada and Europe, including leading companies such as TOTAL, Mobil, Occidental, Shell and Petrofina.

The $200 million French loss, which is only the fourth full-limits loss of such magnitude that OIL has suffered in its 21-year history, stems from an accident at the TOTAL-owned Provence refinery near Marseille on November 9, 1992, which killed six personnel, seriously injured one other and caused extensive physical damages.

The biggest single loss in OIL's history, which was reported in 1989, amounted to $300 million following an incident at a Phillips Petroleum plant in Houston, Texas.

The year before, OIL suffered two heavy losses inside 12 months, one of $270 million stemming from an explosion on the Piper Alpha oil rig in the North Sea and another of $235 million after an incident at a Shell refinery in Louisiana.

OIL's premiums written during fiscal 1992 increased by 6.5 percent ($13.8 million) to $226.3 million. Reinsurance premiums ceded went down by 30 percent ($16.75 million) to $38.9 million.

Net premiums written and earned rose by 19.5 percent ($30.6 million) to $187.4 million.

Losses and loss expenses incurred went up by 129 percent ($153.7 million) to $272.7 million.

OIL made a net underwriting loss of $85.4 million, compared with an underwriting profit of $37.8 million for fiscal 1991.

Total operating expenses decreased by 17.1 percent ($8 million) to $38.6 million, with general and administrative expenses going up by four percent ($129,000) to $3.3 million and interest expense going down by 18.7 percent ($8.1 million) to $35.3 million.

Total assets went up by four percent ($56 million) to $1.445 billion, while total insurance reserves and other liabilities increased by 11.2 percent ($86 million) to $857.4 million.

Statutory capital and surplus dropped by 4.8 percent ($29.8 million) to $588.4 million.

Hurricane Andrew, which brought record losses to some segments of the insurance industry, is not expected to seriously impact on OIL.

In OIL's annual report, Mr. Stephens said that, although the operational loss was disappointing, "the ease with which OIL can respond to events of this magnitude, and its ability to regenerate capital following large losses, demonstrates the company's value as a source of reliable long-term coverage to its members''.

Mr. Stephens said that OIL can expect to play an increasingly important role in the insurance programmes of its members due to the reduction in the capacity of the Lloyd's of London market.

1992 RESULTS OIL INSURANCE LOSS $124.1m PREMIUMS WRITTEN $226.3m LOSSES AND LOSS EXPENSES $272.7m UNDERWRITING LOSS $85.4m OPERATING EXPENSES $38.6m ASSETS $1.446b INSURANCE RESERVES AND OTHER LIABILITIES $857.4m STATUTORY CAPITAL AND SURPLUS $588.4m.