on the business of its established rival, XL Insurance, according to XL's president and CEO, Mr. Brian O'Hara.

At a news conference yesterday to announce the impressive results for the third quarter of 1992 of XL's parent, EXEL, Mr. O'Hara said: "New Bermuda competition had no material effect on our book of business.'' The first month of business for Starr Excess, which is in direct competition with EXEL, was August, which was the last month of EXEL's third quarter.

While he acknowledged that Starr Excess, which is owned by the American International Group, had "a good pedigree behind it'', Mr. O'Hara said EXEL was "better capitalised and reserved than any new competitors''.

He added: "We have a good hold on the franchise.

"We've built up a tremendous amount of goodwill from being here at the beginning when people really needed us. That's why we have such a strong retention rate.

"We do not expect a big impact from Starr on our business.'' EXEL reported a profit of $99.157 million for the three months ending August 31, 1993 -- up by 21 percent ($17.293 million) compared with the same quarter in 1992.

Revenues for the third quarter were up by 16 percent ($29.4 million) to $207.7 million.

Gross premiums written increased by 19.3 percent ($25.429 million) to $157.371 million and net premiums earned went up by 13.3 percent ($13.953 million) to $119.21 million.

Net investment income, excluding realised gains, fell 15 percent ($6.6 million) to $38.2 million.

The company put this drop down to the impact of reinvestment of funds at lower interest rates.

"In addition, the liquidation of one of the company's investment portfolios early in the third quarter and a shift into equities in the period resulted in lower interest and dividend income for the third quarter,'' said a press release.

Realised gains in the third quarter were $42.3 million, compared with $28.3 million in 1992's third quarter.

Losses and loss expenses went up by 14.3 percent ($11.534 million) to $91.947 million.

Acquisition costs and administration expenses increased by 5.4 percent ($842,000) to $16.487 million.

Net income per ordinary share came to $1.79, compared with $1.46 for the third quarter of 1992.

The combined ratio for the third quarter of 1993 was 90.9 percent compared with 91.3 percent for the same period last year.

The loss and loss expense ratios were 77.1 percent and 76.4 percent, respectively, and the underwriting expense ratio was 13.8 percent.

EXEL's assets at August 31, 1993, were worth $3.665 billion, up by 19.5 percent ($597.218 million) on the company's last year-end, on November 30, 1992.

Unpaid losses and loss expenses were up by 9.7 percent ($113.387 million) to $1.282 billion.

Shareholders' equity went up by 14.5 percent ($235.277 million) to $1.863 billion.

At August 31, 1992, EXEL held total investments worth $2.966 billion, up by 12.35 percent ($326.044 million) compared with November 30, 1992.

Cash and cash equivalents were up by 76.8 percent ($187.673 million) to $431.893 million.

EXEL earned $8 million in the third quarter from its equity in the net earnings of its affiliate, property catastrophe reinsurer Mid Ocean Ltd.

During the quarter, EXEL increased its investment in Mid Ocean by about $73 million, bringing its total investment in Mid Ocean during the last ten months to $173 million.

For the first nine months of fiscal 1993, EXEL has made a profit of $290.644 million, up by 35.4 percent ($76 million) on the same period in 1992.

Mr. Michael Kevany, EXEL's chairman, president and CEO, said: "As these results indicate, 1993 continues to be an excellent year for the company.

"I'm pleased with the growth of our insurance operations in an increasingly competitive operating environment which we expect to continue.

"Our investment managers had excellent overall results during the period and we are satisfied with the initial contribution from our equity investment in Mid Ocean Ltd.'' Exel's shares on the New York Stock Exchange closed at $46.25, down $1.25, on volume of 80,600 after the news. Mid Ocean Re, which is traded on NASDAQ, closed up 25 cents at 32.25.

EXEL THIRD-QUARTER AND NINE-MONTH RESULTS Q3 NINE MTHS PROFIT $99 M $291 M PREMIUMS WRITTEN $157 M $400 M PREMIUMS EARNED $119 M $339 M NET INCOME PER SHARE $1.79 $5.22 LOSSES/LOSS EXPENSES $92M $263 M ASSETS $3.665 B SHAREHOLDERS' EQUITY $1.863 B.