traditional workers' compensation insurance to small and mid-size companies, plans to raise up to $50 million in an initial public offering.

Proceeds from the stock sale will be used to provide additional capital for Realm National Insurance Co., a New York insurance company acquired by Stirling in September of last year.

Stirling did not say how many shares it will sell or the price shares will sell for in a filing today with the Securities and Exchange Commission. The $50 million figure was used to calculate a SEC registration fee.

Alternative insurance policies typically involve financial participation by the insured in some or all of the risk, compared with traditional policies that shift risk to the insurer, the filing said.

In addition to its risk management plans, Stirling also offers reinsurance, which allows insurance companies to pass some of their existing risk to Stirling.

Reinsurance companies receive a portion of the premiums paid by the insured in return for assuming some of the risk. This practice allows insurance companies to take on more clients, because there is less risk involved with each client.

For the six months ended June 30, Stirling reported a net income of $6.2 million, or 75 cents a share, compared with $5.1 million, 63 cents a share, for the first half of last year.

Revenue rose to $31 million for the first half of 1997 from $21.8 million for the same period in 1996.

Nicholas Mark Cooke has been the company's chairman and chief executive since 1990. Before joining Stirling, he had worked for a number of London insurance or reinsurance companies since 1976.

The Goldman Sachs Group LP became Stirling's largest shareholder in 1996 with its equity investment that was used to purchase Realm. The group now owns 34 percent of Stirling's stock, or 2.9 million shares.

Goldman Sachs and Dillon, Read & Co. Inc. will underwrite the offering, and shares will trade on the Nasdaq Stock Market under the symbol SCBH, according to the S-1 registration statement.

Bloomberg News