million for fiscal 1991 -- the first year it has failed to make a profit.

The firm's net income dropped by $83.7 million compared with 1990, when it made a profit of $60 million.

Mr. Robert Golden, Heddington's CEO, said the loss was due to increased provision for losses and loss-related expenses and increased investment in oil and gas exploration ventures.

Provision for losses and related expenses went up by 87 percent from $45.8 million in 1990 to $83.5 million.

The loss from oil and gas exploration operations was $65 million, more than double the 1990 figure.

Heddington suffered an underwriting loss of $37.8 million for the year, compared with a profit of $3.6 million in 1990.

Premiums written came to $131 million, down by $3 million, while there was little change in net premiums earned, which amounted to $58.6 million.

Despite the poor performance, he said 1991 had been "a productive year'' for Heddington and its subsidiaries.

"We achieved our primary corporate mission by providing the best insurance coverage and claims service possible to Texaco, its subsidiaries, joint ventures and affiliates worldwide, at competitive costs.'' He added: "Insurance company insolvencies hit a record high, companies withdrew from selective risks such as oil and gas, and insurance capacity for such risks continued to decrease significantly.'' During the year, Heddington's assets went up from $1.23 billion to $1.27 billion, while its liabilities rose from $506 million to $533 million.

Heddington Insurance 1991 results Loss $24M Underwriting loss $37.8M Premiums written $131M Total assets $1.27B Total liabilities $533M Retained earnings $627M