quarter of fiscal 1993 -- up 20 percent on the same period the year before.

The newly released figures bring the company's total profit for the first nine months of the fiscal year to $161.2 million -- an increase of 15 percent over the third quarterly figure of 1992.

Operating income, which excludes realised investment gains, was $32.6 million or 65 cents per share for the three months ending June 30, 1993, compared to $28.6 million or 79 cents per share for the same period in 1992.

For the first nine months of fiscal 1993, operating income came to $93.1 million, an increase of 12.4 percent.

Net premiums earned jumped by 18 percent compared to the same nine months ended June 30, 1992. Net premiums written during the third quarter decreased by 2.6 percent to $94.7 million compared to the same period in 1992.

The fall in net premiums written was caused by a decision to stop offering three year programmes for higher risk accounts. These policies were previously paid three years in advance, but premiums will now be paid year by year.

Premiums earned were up by 13.3 percent ($9.4 million) to $80.2 million. Net realised gains increased by 29.4 percent ($5.7 million) to $25.4 million and net investment income came to $30.5 million, up by 9.3 percent ($2.6 million).

Administrative expenses increased by 9.7 percent on the same third quarter last year -- up 32 percent compared with the first nine months of 1992.

Acquisition figures costs went up by 8.4 percent to $9.8 million and losses and loss expenses increased by 11.9 percent ($6.9 million) to $65.7 million.

Earnings per share went down from $1.33 as of June 30, 1992, to $1.16 a year later. Total investments and cash amounted to $2.2 billion on June 30, 1993.

ACE chairman, president and chief executive officer Mr. Walter Scott described the results as "absolutely excellent''.

"ACE's pricing is driven by long-term profitability, independent of the underwriting cycle. We do not rely on reinsurance to provide capacity and as a consequence, I believe we have built a unique franchise that serves highly complex insurance needs,'' he said.

"Since ACE's inception, I have seen an increase in the frequency and severity of excess liability claims. I have not seen any recent change in direction, either favourable or unfavourable in that trend.'' He described the directors' and officers' liability insurance market as being on "the sloppy side, as it is being negatively impacted by new capacity that continued to enter the market. Pricing continues as long as the risk doesn't change. Accounts are being renewed as they are expiring.'' In his preamble to an international teleconference discussion held yesterday concerning the third-quarterly results, Mr. Scott commented on the impact of American International Group's new excess liability subsidiary Starr Excess.

"The operation started on July 1 -- to the best of my knowledge with three or four accounts. I don't feel it will have an impact on ACE, but it is too early to tell. Starr Excess announced it will focus on written business that attaches on the $50 million range, which means on balance we do not expect Starr to have a major impact on ACE's business,'' said Mr. Scott.

"If Starr is attached at $50 million, there is some overlap but not a heck of a lot.'' ACE's minimum attachment point starts at $100 million.

AIG and General Re Corporation are Starr Excess' co-sponsors, with AIG holding 23.9 percent share of Starr Excess. The subsidiary provides general liability insurance, and excess directors and officers liability insurance.

ACE's decision to purchase stock in Centre Re was also noted by Mr. Scott.

"ACE's ownership in Centre Re is up to 9.8 percent,'' he said. "Centre Re has one of the most imaginative and innovative management teams in the insurance industry.'' ACE, through its wholly-owned subsidiaries, provides excess directors' and officers' liability insurance and also provides high level excess liability insurance.

Mr. Walter Scott.