annual earnings for the year ending December 31, 1993.

The company -- formed seven years ago -- recording a profit of $11.8 million for fiscal 1993.

The Bermuda-based reinsurer is owned by 56 colleges, universities and independent schools in the US.

Profits increased $5.5 million, from $6.3 million in 1992 -- an 87 percent jump in profits.

Gross written premiums increased to $25.6 million, an increase of 16.4 percent from $22 million written in 1992.

With a combined loss and expense ratio of 90 percent, the company produced underwriting income of $1.5 million compared to a deficit of $1.4 million in 1992.

Investment income grew to $7 million up from $6.5 million last year ($544,051) -- an eight percent increase.

The year's operations for 1993 contributed $11.8 million to retained earnings, bringing the capital and surplus to $72.9 million.

Outstanding loss reserves increased by 17 percent, from $36.2 million to $42.2 million -- a $6 million increase.

In addition, retained earnings increased by 51 percent, from $22 million in fiscal 1992 to $33.3 million in fiscal 1993-- an $11.3 million increase.

Total revenues for fiscal 1993 amounted to $28 million, a $4.4 million increase over the previous year, when SCUUL reported revenue of $23.7 million.

Revenues leapt by 18 percent.

Total expenses decreased by $1 million from $17.4 million in 1992 to $16.3 in 1993 -- a six percent decline.

Mr. Thomas Kelsey, president and CEO at SCUUL, said: "The investment account grew significantly, because of the ability of our investment managers, who had more to invest during 1993, even though interest rates were down.

"They picked situations where the return is good.

"Keeping with our conservative investment practices, SCUUL continues to own only high quality and government securities or their equivalent, rated A or better, and maintains a comfortable level of liquidity in its portfolio by having 28 percent of its holdings with maturities of five years or less.

"A gain of $3.3 million from securities sold contributed significantly to the exceptional operating results'', he said.

"Conservatism'' also continues to describe the company's reserving policies with case and IBNR reserves totaling $42.2 million, an increase of 16.6 percent over the prior year, said Mr. Kelsey.

"This level of reserves reflects both prior and expected claims experience, and recognises several emerging trends in liability issues of the educational community.'' With more than 800 educational institutions reinsured through United Educators Insurance Risk Retention Group, its principal reassured, SCUUL continues to provide human and financial resources to risk management education and programmes administered by United Educators.

In January, a new division of Arthur J. Gallagher (Bermuda), called Scholastic Risk Services (SRS) was set up to provide specialised school insurance coverages.

The division was formed to market the broad excess liability and educators' legal liability products of SCUUL. The programmes were until recently, only available to colleges, universities and independent schools.