and fourth quarter profits.

For the 12 months ended December 31, 1996, profit at $29.3 million, or $1.12 per share, was off 32 percent compared to year earlier profit of $43.4 million, or 1.66 per share.

The company reported a $3.3 million realised capital loss in 1996 compared to realised capital gains of $27.1 million in 1995.

Net income for the quarter was $14.2 million, or 54 cents per share, compared to $17.8 million, or 68 cents per share.

Year operating income was $32.6 million compared to $16.3 million.

Corresponding quarter figures were $10.4 million and $5.5 million.

Gross premiums written for the year were $737.4 million compared to $613.9 million. Quarter figures were $179.2 million compared to $187.1 million. Year net premiums written were $729.3 million compared to $602.3 million while quarter figures were $175.9 million and $183.8 million.

The company incurred no significant catastrophe losses in 1996 or 1995.

Combined ratio was 104.7 in the quarter compared to 104.4 in the prior fourth quarter.

Last month, Zurich Insurance Group made a proposal to acquire all the company's publicly held shares for $36 each. The company's board of directors has appointed a special committee of its members to determine the fairness of the offer to minority shareholders.

Book value at December 31 was $27.18, up from $26.02 a year earlier.

General Re Corp. said it boosted its quarterly dividend to 55 cents a share from 51 cents. The dividend is payable March 31 to shareholders of record March 24. General Re is a Stamford, Connecticut-based insurance company.