$22.8 million for fiscal 1992 -- a 3.9 percent improvement over 1991.

Premiums written increased by 11.3 percent ($14.9 million) to $146 million, while premiums ceded remained steady at $72.55 million.

Net premiums written for the 12 months to December 31, 1992, went up by 27 percent ($15.56 million) to $73.46 million. Net premiums earned increased by 22 percent ($12.9 million) to $71.5 million.

Heddington made an underwriting loss of $23.37 million, which was a 3.8 percent ($14.47 million) improvement on 1991.

Provision for losses and loss related expenses went up by 35 percent ($36.48 million) to $140.47 million.

Investment income decreased by 6.4 percent ($5.16 million).

Heddington's loss from oil and gas exploration operations came to $22.83 million, compared with $23.77 million for 1991.

The company's assets went up by 6.5 percent ($82.7 million) to $1.35 billion, while its liabilities increased by 14.7 percent ($78.18 million) to $611.68 million.

Shareholders equity increased slightly to $738.72 million.

Heddington's president and CEO Mr. Bob Golden said: "1992 was a year characterised by an uncertain operational climate for many risk managers and insurers and continued contraction in worldwide insurance capacity.

"Despite this, Heddington Insurance is pleased to report it has once again provided clients with comprehensive and cost-effective insurance programmes tailored to their specific requirements.

"While many other insurers, as a result of adverse loss experience, increased their premiums and restricted limits and coverage, Heddington Insurance, by the continuation of strategically sound reinsurance placed through its affiliate broker, Heddington Brokers, was able to maintain similar coverage of breadth and limits as in 1991.'' Mr. Golden said that Heddington had succeeded in its objective to provide "comprehensive, customised and cost-effective insurance programmes'' to cover Texaco's risks.

Although Heddington had been hit by Hurricane Andrew and a fire at a Texaco refinery in Wilmington, California, the company had managed to contain insurance costs for its parent, he said.

"Our ability to handle these claims continued to keep expenses down for our policyholders and improve earnings for the stockholder,'' he added.

During 1992, Heddington expanded into several areas and became one of the first private insurance companies to be registered to do business in the Commonwealth of Independent States.

The company also became licensed to write business in Puerto Rico and the US Virgin Islands and also expanded its activities into Central Europe, doing business in Bulgaria and Poland.

Heddington became licensed as a reinsurer in Colombia, Chile, Argentina and Mexico. Applications are pending in Ecuador and the Dominican Republic.