(MRM) has declared net income available to shareholders at $9.4 million for the three months to September 30, up 22 percent over the $7.7 million posted for the same period last year.

Expanding business operations pushed three-quarter profits to $27.5 million, a 21 percent increase. Return on equity was 20.5 percent for the period.

Operating income for the third quarter reached a record level of $9.8 million, up 26 percent from a year earlier.

The company said the third quarter saw continued strong sales of new accounts combined with an improvement in the renewal rate for accounts associated with the policy-issuing subsidiaries.

Fee income rose 22 percent to $20.4 million for the three months, and rose 26 percent to $59.9 million for the nine month period.

Operating expenses were $12.4 million (up 32 percent) for the third quarter and $35.6 million (up 33 percent) for the nine month period. The increases were attributable to the inclusion of Professional Underwriters Corp. (PUC) , which added $1.1 million or 12 percent per quarter.

The rest was due to increases in personnel and other expenses as a result of increased business.

Investment income totaled $5.7 million (up 59 percent) for the quarter and $16.3 million (up 47 percent) for the nine months.

Improvements on investment return were attributed to the increase in invested assets including the net proceeds of $112 million for the Zero Coupon Convertible Debenture Offering which was completed in October 1995.

The increase in invested assets was offset by slightly lower rates of return from the fixed income portfolio.

Gross premiums written decreased by 27 percent to $61.1 million for the third quarter, but dipped just 0.2 percent to $218.6 million for the nine months.

Premiums earned decreased 52 percent to $7.3 million for the quarter and dropped 14 percent to $35 million for the three quarters.

The company attributed the decreases to a reversal of an over accrual of gross written premium booked earlier in the year and a significant drop in premium from assigned risk pools. Since MRM passes on the financial result of premium from these assigned risk pools to its clients, the drop had no effect on the company's bottom line, and was offset by a corresponding 53 percent and 15 percent decrease in total insurance costs for the quarter and nine-month period.

Legion Insurance Company and Legion Indemnity added 81 new accounts for the three quarters. And Legion's renewal rate was 72 percent for that period.

MRM's original business line, corporate risk management, accounted for 64 percent (1995: 74 percent) of total fee income over nine months. Providing services to businesses and associations seeking to insure a portion of their risk in a less sensitive alternative market structure.