The company was hit by a drop in investment gains for the period ending Fenruary 28. In 1993, net income was $90.5 million or $1.61 per share.

President Mr. Michael Kevany said: "Net income was reduced in the first quarter of 1994 as a result of the company's investment managers realising a lower level of capital gains than a year ago.

"Net realised gains were significantly higher in the first quarter of 1993 due to the liquidation of two equity portfolios and stronger fixed income markets than in the first quarter of 1994. As I have noted previously, the significant level of gains taken during 1993, as a result of the very strong investment markets, are not likely to repeat this year.'' First quarter operating earnings, which exclude realised investment gains, were $59.6 million or $1.09 per share, compared with $52.

1 million or $0.93 per share in 1993's first quarter.

"Our per share operating results, excluding realised gains, increased 17 per cent in the first quarter of 1994 from a year ago,'' stated Mr. Kevany.

He said the company's insurance operations have maintained a very disciplined approach to underwriting excess insurance in a more competitive market, achieving an exceptional level of business retention in the first quarter.

Gross premiums written shot up by more than 50 percent to $203.1 million for the first quarter, compared to $135 million in the corresponding period the year before.

The increase includes $49.2 million in premiums relating to multi-year contracts that will be earned in future years and $12 million relating to surcharges on insureds that have had adverse loss experience in prior years.

Excluding these amounts, the increase in gross premiums written was five percent.

Revenues were up by nine percent to $205.5 million for the first quarter, compared to the $189 million a year ago.

Assets moved up to $3.8-billion, from $3.6-billion at November 30,1992.

Shareholders' equity was $1.8-billion at the end of the review period and at the end of last November. Fully diluted book value per share increased to $33.87 at the end of last month, when compared to $33.61 at the end of November.

Net premiums written for the quarter showed a 92 per cent increase from $101.3 million a year ago to $194.2 million. Mr. Kevany said net premiums were positively impacted by the commutation of the aggregate excess of loss reinsurance agreement as of November 30, 1993.

Premiums relating to that agreement were $25.9 million in the first quarter of 1993.Net earned premiums for the first quarter of 1994 were $137.8 million, up by 29 per cent.

Mr. Kevany said that the European subsidiary continues its strong growth and that he is pleased with the increased number of multi-year contracts being written.

Exel Ltd. First Quarter (Thousands of dollars, except per share) Net Premiums Written $194,160 Net Premiums Earned $137,799 Net Income $79,575 Earnings Per Share $1.46 Combined Ratio 91.1% Total Assets $3,770,490