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EXEL LIMITED REPORTS SECOND QUARTER EARNINGS

 HAMILTON, BERMUDA, June 16 /PRNewswire/ -- EXEL Limited (NYSE: XL) today reported that net income increased more than 65 percent to $101.0 million for the second quarter ended May 31, 1993 from $60.7 million for the same period in 1992. Net income per share for the second quarter of 1993 rose by 70 percent to $1.82 compared with $1.07 in 1992's second quarter. Net income for the six months of 1993 was $191.5 million, or $3.43 per share, compared with $132.8 million, or $2.32 per share, for the first six months of 1992.
 "These are excellent overall results," stated Michael J. Kevany, EXEL's chairman, president and chief executive officer. "New business growth and high retention of existing business, as well as appropriate adjustments to premiums in specific risk categories, have contributed to strong operating results. After adjusting for the company's investment in Mid Ocean Reinsurance Company Ltd., our core business operations posted gains in both the quarter and six months."
 Mr. Kevany also noted that, "Our investment managers performed well again this quarter. Significant gains were realized as a result of the strength of the U.S. bond market during the first half of the year."
 Revenues for the second quarter of 1993 were $205.1 million, compared with $154.6 million in 1992. For six months revenues totalled $394.0 million and $316.4 million in 1993 and 1992, respectively. Total assets at May 31, 1993 were $3.3 billion, compared with $3.1 billion at November 30, 1992. Shareholders equity was $1.7 billion at May 31, 1993 compared with $1.6 billion at November 30, 1992. Fully diluted book value per share was $30.91 at May 31, 1993, compared with $28.49 at November 30, 1992.
 Gross and net premiums written for the second quarter of 1993 were $107.6 million compared with $92.3 million in the same quarter of 1992, an increase of 16.7 percent. There were no reinsurance premiums ceded during the second quarter of 1993. For six months of 1993, gross premiums written totalled $242.6 million, an increase of 14.9 percent from $211.3 million in 1992's six months. Net written premiums for six months of 1993 increased 12.0 percent to $209.0 million, compared with $186.5 million in 1992.
 Net investment income, excluding realized gains, for the second quarter of 1993 was $42.7 million compared to $44.0 million in 1992, a decrease of 3.0 percent. For six months of 1993, net investment income was $85.1 million, a decline of 1.7 percent from $86.5 million in the six months of 1992.
 Operating earnings, which exclude realized investment gains, for the second quarter of 1993 were $55.4 million, or $1.00 per share, compared to $51.8 million, or $0.91 per share, for the second quarter of 1992, an increase of 7.0 percent. In the second quarter of 1993, the Company's equity in the net earnings of its affiliate (Mid Ocean Reinsurance Company Ltd.) was $3.6 million, or $0.06 per share. Operating earnings in the second quarter of 1992 included charges of $0.8 million, or $0.01 per share, for costs incurred relating to the Company's second public offering. For six months of 1993, operating earnings, excluding realized investment gains were $107.5 million, or $1.92 per share, an increase of 7.0 percent from $100.5 million, or $1.76 per share, in 1992. Earnings from the Company's investment in Mid Ocean Reinsurance Company Ltd. were $4.8 million, or $0.08 per share, in the six months of 1993. Costs incurred for the public offering in 1992 reduced that year's six month income by $2.0 million, or $0.03 per share.
 The combined ratio for the second quarter was 91.8 percent, compared with 92.3 percent in the same quarter of 1992, with the loss and loss expense ratio being 77.6 percent and 77.2 percent, respectively, and the underwriting expense ratio being 14.2 percent, compared to 15.1 percent (including 0.8 percent for costs incurred relating to the second public offering), respectively. For six months the combined ratio was 91.7 percent, compared with 92.7 percent in the year ago period. The loss and loss expense ratio components for six months were 77.5 percent and 76.9 percent, respectively, for 1993 and 1992, and the underwriting expense ratios were 14.2 percent and 15.8 percent (including 1.0 percent for costs incurred relating to the second public offering), respectively.
 Net realized investment gains on the sale of investments in the second quarter of 1993 were $45.6 million compared to gains of $8.9 million for the second quarter of 1992. For six months net realized gains were $84.0 million compared with $32.3 million in the 1992 six month period. The significant gains in both the quarter and six months reflect the company's policy of having its managers invest for a total portfolio return. Unrealized capital gains at May 31, 1993 totalled $82.0 million compared with $62.7 million at November 30, 1992.
 The per share earnings in the second quarter of 1993 were affected by a decrease in weighted average shares outstanding to 55.6 million from 56.7 million in 1992. For six months of 1993 per share results were also impacted by a decrease in weighted average shares outstanding to 55.9 million from 57.2 million in 1992. These decreases principally reflect the Company's repurchase and cancellation of options in April 1992 and during the first quarter of 1993.
 EXEL Limited, through its wholly-owned subsidiaries, X.L. Insurance Company, Ltd. and X.L. Europe Insurance, provides general liability, directors and officers liability and professional liability coverage to industrial, commercial and other enterprises, directors and officers of such enterprises and professional service firms on a worldwide basis.
 EXEL LIMITED
 SUMMARY CONSOLIDATED FINANCIAL DATA
 (Dollars in thousands, except per share amounts)
 Periods ended Three months Six months
 May 31, 1993 1992 1993 1992
 (unaudited) (unaudited)
 Income Statement Data:
 Gross premiums written $107,648 $ 92,281 $242,631 $211,258
 Net premiums written 107,648 92,281 208,975 186,543
 Net premiums earned 113,185 101,651 220,220 197,573
 Net investment income 42,735 44,037 85,075 86,535
 Net realized gains 45,558 8,900 84,009 32,293
 Equity in net earnings
 of affiliate 3,587 --- 4,765 ---
 Losses and loss expenses 87,815 78,456 170,723 151,981
 Acquisition costs and
 administration expenses 16,117 15,339 31,323 31,149
 Income before income tax
 expense 101,133 60,793 192,003 133,271
 Net income 100,975 60,650 191,487 132,777
 Weighted average number
 of ordinary shares and
 ordinary share
 equivalents 55,601 56,716 55,882 57,154
 Net income per ordinary
 share and ordinary share
 equivalent 1.82 1.07 3.43 2.32
 As of May 31 As of Nov. 30
 1993 1992
 (unaudited)
 Balance Sheet Data:
 Total investments $2,803,038 $2,639,648
 Cash and cash equivalents 339,810 244,220
 Other assets 79,585 83,460
 Investment in affiliate 104,426 100,000
 Total assets $3,326,859 $3,067,328
 Unpaid losses and loss expenses $1,222,656 $1,169,003
 Shareholders' equity $1,707,025 $1,627,312
 Fully diluted book value per share $30.91 $28.49
 -0- 6/16/93
 /CONTACT: Gavin R. Arton of Exel Limited, 809-292-8515
 (XL)


CO: EXEL Limited ST: IN: INS SU: ERN

MP -- NY011 -- 2476 06/16/93 08:52 EDT
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Date:Jun 16, 1993
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