it earned $17.5 million in 1993, after recording a $6 million loss a year earlier.

The company, which launched an 8.55 million share offering last May and bought the Zurich Reinsurance Company of America at the same time, warned all comparisons with the previous year were difficult.

ZRC said after tax operating income for the year, excluding realised capital gains, was $2.8 million, or 12 cents a share compared to a loss of $7 million or 41 cents a share in 1992.

For the fourth quarter ending December 31, the company recorded an after-tax net operating loss of $190,000 (one cent a share).

The figures do compare favourably with the previous year's results that included a loss of $7 million (41 cents a share) for 1992, after a $4.4 million (26 cents per share) loss in the fourth quarter of that year. Realised capital gains, after taxes, were $14.8 million, or 65 cents a share for 1993, compared with $980,000 or six cents a share in 1992. Fourth quarter results showed realised capital gains (net of tax) were $1 million or four cents a share, compared to $550,000 or three cents a share for the fourth quarter of 1992.

ZRC issued a public offering of 8.55 million shares last May, acquiring Zurich Reinsurance Company of America, therefore per share amount comparisons between 1993 and 1992 are not meaningful.

Total profit in the fourth quarter was $830,000 (three cents per share), compared to $3.9 million in 1992.

The change from losses to profit reflects the growth in net investment income generated by ZRC's 1993 initial public offerings of common stock in May and of 30-year debt in October, and offset partially by increased operating costs and expenses.

The fourth quarter 1992 results were affected by property catastrophe claims from Hurricanes Andrew and Iniki, together with related reinstatement premiums, that totaled about $10.8 million for the 1992 year.

The bottom-line profit of $17.5 million came about as a result of pre-tax net investment income of $9 million for the quarter and $29 million for the 1993 year, up from 1992 figures of $3.4 million and $13.3 million,respectively.

ZRC said it is continuing to manage its investment portfolio on a total return basis, with the average maturity of fixed income investment portfolio shortened during the fourth quarter of 1993, reducing the yield on the portfolio, while increasing the company's ability to take advantage of rising interest rates.

Net premiums written for last year's fourth quarter shot up by 82 percent to $28.6 million, and rose for the whole year by 90 percent to $101.6 million.

Net earned premiums were up 63 percent for the fourth quarter to $23.9 million and up 87 percent to $86.3 million for the year.

The growth in premiums is attributed to increased participations on renewals of both treaty and facultative business and new submissions underwritten.

Commenting on the company's first fiscal year, Chairman Mr. Steven Gluckstern, said: "Our first few quarters in business were as anticipated. Pricing continues to be highly competitive -- generally underpriced in casualty -- and the amount of business we have seen that meets our internal ROE hurdles remains unlimited.'' Other operating costs rose to $6.5 million in the fourth quarter and totaled $15.9 million for the year, as the company's infrastructure was being built.

So far, claim reports over the January 1994 earthquake have been minimal, with expected company losses estimated at no more than $5 million, although the ultimate amount of loss is uncertain because of the ordinary time-lag in the reporting of losses from primary insurers.

Bermuda-registered Centre Reinsurance Companies holds a 58 percent stake in ZRC. The company is listed on the New York Stock Exchange. The shares closed at $... yesterday.

ZRC YEAR END RESULTS (Thousands of dollars except per share figure) Profit 17,508 MGross premiums written 114,273 Cash and invested assets 928,359 Shareholders equity 637,682 Combined ratio 126.1% Book value per share $24.43 Statutory surplus 614,650.

Mr. Steven Gluckstern.