million, or 55 cents per common share, for the second quarter ended June 30 -- a 24 percent increase over the same period last year.

For the first half of its fiscal year the company posted net earnings of $21.9 million, or $1.08 cents per share, a 20 percent increase over the same period in the previous financial year.

Company management attributed the profit increases to new business and continued strong renewal rates. The company's programme business, in which the company acts as a conduit between producers of specialty books of business and reinsurers, was its fastest growing segment.

Programme business accounted for 40 percent of total fee income of $48.9 million for the first half of the fiscal year, compared to 22 percent in the same period last year. Programme business fees increased by 136 percent to $19.8 million in the first half of the year compared to last year.

The corporate risk management segment of the business accounted for 46 percent of total fee income for the first six months, down from 64 percent in the 1996 period. Fees decreased by 12 percent in first six months to $22.2 million "as a result of a continuation of the soft market and declines in workers' compensations rates,'' according to the company.

Meanwhile, Legion Insurance Co. and Legion Indemnity, the company's policy issuing subsidiaries, added 29 new accounts in the second quarter. Mutual had a total of 64 new accounts during the first half of 1997, compared to 55 in the first half of 1996. The company retained 80 percent of its customers in the first six months of the year compared to a 67 percent renewal rate in the 1996 period.

The company had gross premiums of $280.5 million for the first six months, a 78 percent increase compared to the same period last year.

The company's specialty brokerage business produced $3.1 million of fee income in the first half of 1997, six percent of the total.

The company's financial services sector, built on last year's purchase of The Hemisphere Group Ltd., accounted for eight percent of total fee income for the half year. Hemisphere provides administrative services for 104 mutual funds.

Mutual Risk recently invested in Tremont Advisors Inc. and formed MRM Life Ltd. to expand its financial services sector. The new company will introduce variable annuity and variable life insurance products to the market.

Investment income was $13 million for the first six months, an increase of 22 percent compared to the same period last year. Operating expenses were $29.2 million for the six months, an increase of 26 percent.