acquisitions, Bermuda-based Exel Ltd. yesterday reported fourth quarter earnings of $129.8 million, a 39 percent increase over the same period in 1997.

Profit from operations for the year ended November 30 increased 26 percent to $437.3 million. Income per share was $4.61, compared to $4.02 in 1997.

Net income for the full year, including realised investment gains, the amortisation of intangible assets and one time charges of $17.5 million, was $587.7 million, or 13.2 percent below 1997 results. The $17.5 million charge was taken in relation with expenses the company had in its merger with Bermuda-based Mid Ocean Ltd.

Exel president and chief executive officer Brian O'Hara indicated the company remains primed to take advantage of its success and make further acquisitions or enter into new ventures.

"We have achieved record operating results in both the quarter and the full year, despite operating in a difficult competitive market and the impact of a number of significant catastrophic events,'' he stated in a press release.

"Also, our total return investment philosophy has continued to reap benefits for our shareholders, generating more than $2 per share in additional income, despite turbulent financial markets. Exel is in excellent financial share and in a position to use its considerable resources if and when the opportunity arises and we remain positive about our prospects for 1999.'' Interest on bonds and other investment income rose 65 percent to $90.4 million during the fourth quarter compared to the same period in 1997. Net premiums rose 65 percent to $252 million.

The premium growth came mainly from a spate of recent acquisitions.

Exel Ltd. shopping list and new formations in 1998 (dates reflect when announced, and not necessarily when acquired or formed): March Merger with Mid Ocean Ltd. ($2.1 billion).

July Purchase of Bermuda-based Reeve Court Insurance ($100 million).

Purchase of 25 percent of US-based Tri City Brokerage, Inc.

September Airline Risk Consortium -- formed with ACE Ltd. and Overseas Partners Re Ltd.

November Formation of XL Financial Assurance Ltd. and equity interest in Financial Security Assurance International Ltd. through joint venture with Financial Security Assurance Holdings Ltd.

December Intercargo Corp. ($88 million).

Brian O'Hara