The company, which operates in the London and Bermuda insurance markets, also reported a $13.8 million profit in the fourth quarter of 1993 compared to a loss of $1.5 million in 1992.

For the year ending December 31, 1993, Sphere Drake earned $1.71 per share for its continuing operations compared to 97 cents a share in 1992.

Sphere Drake Holdings president Mr. Ian Dean said the company had a combined ratio in 1993 of 98.6 percent compared to 105.8 percent in 1992.

Income from continuing operations for the year was $33.9 million compared to $15.9 million. For the forut quarter, it had income of $17.3 million comparted with a loss of $1.1 million a year earlier.

For 1994's first quarter, the company said it did not expect its earnings would be materially affected by exposures to the Los Angeles earthquake or the US winter storms.

Net premiums written in the Bermuda alternative risk transfer market increased for the year from $32.5 million to $37.9 million. The Bermuda operation's share of total net premiums written increased from 9.7 percent to 11.7 percent for the year.

For the fourth quarter, the Bermuda operation wrote $9.4 million in net premiums or 11.3 percent of the total, compared to $8.5 million and 8.7 percent in 1992.

Total revenues, excluding realised investment gains or losses for the full year and fourth quarter were $363.4 million, up 8.5 percent, and $106.7 million, up 6.3 percent, respectively.

"Strong pro forma earnings for 1993 were achieved by careful selection of business, maintenance of stringent underwriting standards and the benefits of a year that was free of major catastrophes,'' Mr. Dean said.

The pro forma results exclude realised investment gains or losses, an exchange again arising on the redemption of redeemable preferred shares, the disposal of discontinued automobile insurance operations, the impact on investment income of the associated sale of assets, an $8.2 million one-time non-cash charge for compensation of share awards and options and assumed interest income on the proceeds of he company's public offering last year.

Without the exclusions, the company earned $33.8 million for the year compared to $5.1 million and $17.28 million for the quarter compared to loss of $6.92 million.

Total assets for the year increased from $1.48 billion to $1.66 billion.