Bermuda-based Mutual Risk Management Ltd. (MRM) has continued the significant growth in its fee business and operating income, announcing yet another set of second quarter records.

Program business' fees grew 76 percent to $18.6 million and operating income leapt 29 percent to an unprecedented $15.2 million for the quarter.

For the first six months program business jumped 73 percent to $34.1 million and operating income rose 30 percent to $29.9 million.

Program business is the fastest growing segment of the company, which involves replacing traditional insurers and acting as a conduit between producers of specialty books of business and reinsurers wishing to write that business.

It accounted for 57 percent and 53 percent of total fee income in the second quarter and first half year, respectively.

Return on equity remained very strong at 21 percent for the six month period to June 30.

This performance powered MRM to net income of $14,537,000 for the second quarter, up more than 30 percent from the same period in 1997.

Net income for the first six months rose more than 33 percent to $29,068,000.

Gross premiums written were up 56 percent to $436 million for the first six months, mainly as a result of the program business growth.

MRM's fee income grew 31 percent in the second quarter to $32.8 million, and grew 32 percent during the two quarter period to $64.4 million.

Operating expenses increased $33.1 percent for the quarter to $20.1 million and rose 36 percent to $39.8 million for the first half of the year.

The increase was attributable to recent acquisitions, personnel growth and other business expenses related to business growth.

Corporate risk management fees decreased 15 percent in the second quarter and fell eight percent for the six month period to $20.5 million.

The specialty brokerage business, which provides access to Alternative Risk Transfer insurers and reinsurers in Bermuda and Europe, grew 16 percent in the first half to $3.1 million.

The financial services division being built on the acquisition of Hemisphere, providing administrative services to offshore mutual funds and other companies, increased 60 percent to $6.1 million for the six month period.

Net investment income increased marginally by one percent to $7.1 million in the second quarter and by 16 percent to $15 million in the two quarter period.

In the six months to June 30, MRM assets rose from $2.147 billion to $2.43 billion and shareholders' equity rose from $260 million to $302 million.