third quarter profits to September 30 at $45 million, down just 2.4 percent from $46.2 million in the same period in 1994.

A 12.5 cent dividend was declared.

Excluding net realised investment gains of $2.4 million, operating earnings were $42.7 million, compared to $48.8 million a year earlier with net realised losses of $2.7 million.

Losses and loss expenses were $28 million, or 48.4 percent of net premiums for the third quarter, compared to last year's $8.2 million or 17.4 percent.

The rise in losses was partly due to the increase in hurricane activity this year.

The earnings bring net income for the first nine months up to $155 million or $2.77 a share, compared with $106.3 million, or $1.92 per share for the first nine months of 1994.

Excluding net realised investment gains of $3.9 million, operating earnings for the nine month period were $151.1 million, compared to the first nine months of 1994, when operating earnings were $117.8 million, with net realised investment losses of $11.5 million.

Losses and loss expenses incurred for the first nine months were $52.9 million or 32.1 percent of net premiums earned. That compares to last year's first nine months of $33.1 million, or 26.6 percent of net premiums earned.

Net investment income rose from $15.7 million during the same period in 1994, excluding net realised investment losses, to $20.9 million, excluding net realised investment gains. The company said it was due to higher fixed income yields and a larger capital base.

At September 30, total assets were $1.4095 billion, up a healthy 27.6 percent during the first three quarters. Total shareholders' equity increased 19.6 percent to $1.2383 billion.