<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10-Q
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended JANUARY 31, 1997
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
Commission File Number 0-22118
MID OCEAN LIMITED
(Exact name of registrant as specified in its charter)
Cayman Islands Not Applicable
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification Number)
Richmond House, 12 Par-la-Ville Road, Hamilton HM 08, Bermuda
(Address of principal executive offices)
Telephone Number: (441) 292-1358
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
--- ---
As of March 17, 1997 there were outstanding 34,805,205 Class A Ordinary Shares,
1,190,292 Class B Ordinary Shares and 1,860,000 Class C Ordinary Shares, each of
$0.20 par value, of the registrant.
<PAGE> 2
MID OCEAN LIMITED
INDEX
<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION
Financial Statements: Page
<S> <C>
Consolidated Balance Sheets 3
at January 31, 1997 (unaudited) and October 31, 1996
Consolidated Statements of Operations 4
for the three months ended January 31, 1997 and 1996 (unaudited)
Consolidated Statements of Cash Flows 5
for the three months ended January 31, 1997 and 1996 (unaudited)
Notes to Consolidated Financial Statements (unaudited) 6
Management Discussion and Analysis of Financial 7
Condition and Results of Operations
PART II - OTHER INFORMATION
Item 6 Exhibits and Reports on Form 8-K 13
Exhibit 11 Computation of Earnings per Share 14
Signatures 15
</TABLE>
<PAGE> 3
PART I. FINANCIAL INFORMATION
MID OCEAN LIMITED
CONSOLIDATED BALANCE SHEETS
(THOUSANDS OF UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
JANUARY 31, 1997 OCTOBER 31, 1996
ASSETS (UNAUDITED) (AUDITED)
---------------- ----------------
<S> <C> <C>
Investments available for sale:
Fixed maturities at fair value $ 1,344,402 $ 1,360,210
(Amortized cost $1,344,786; 1996: $1,353,056)
Short-term investments at fair value 54,054 26,435
----------- -----------
(Amortized cost $53,274; 1996: $26,226)
Total investments available for sale 1,398,456 1,386,645
Unquoted investments; at cost 7,914 7,914
Cash and cash equivalents 234,621 163,968
Accrued investment income 23,370 24,106
Reinsurance premiums receivable 398,953 276,360
Funds withheld by cedents 10,737 8,696
Outstanding losses recoverable from reinsurers 7,178 5,466
Prepaid reinsurance premium 14,291 15,846
Profit commissions receivable 55,131 50,338
Deferred acquisition costs 61,238 42,647
Goodwill 23,984 24,416
Other assets 21,079 16,297
----------- -----------
Total assets $ 2,256,952 $ 2,022,699
=========== ===========
LIABILITIES
Reserve for losses and loss expenses $ 446,160 $ 427,717
Reserve for unearned premiums 450,816 303,340
Investments pending settlement 45,183 43,374
Reinsurance balances payable 3,561 5,870
Other liabilities 70,022 72,525
----------- -----------
Total liabilities 1,015,742 852,826
Minority interest 55,401 52,674
----------- -----------
Total liabilities and minority interest $ 1,071,143 $ 905,500
----------- -----------
SHAREHOLDERS' EQUITY
Ordinary Shares (par value $0.20; authorized 200,000,000 shares;
issued and outstanding, 37,845,038;34,401,576) $ 7,569 $ 6,880
Additional paid-in capital 675,446 625,048
Net unrealized (depreciation) appreciation on investments (591) 6,920
Foreign currency translation adjustments 1,469 99
Deferred compensation (1,939) (2,058)
Retained earnings 503,855 480,310
----------- -----------
Total shareholders' equity $ 1,185,809 $ 1,117,199
----------- -----------
Total liabilities and shareholders' equity $ 2,256,952 $ 2,022,699
=========== ===========
</TABLE>
See accompanying notes to consolidated financial statements
3
<PAGE> 4
MID OCEAN LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(THOUSANDS OF UNITED STATES DOLLARS, EXCEPT SHARE AND PER SHARE AMOUNTS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
REVENUES JANUARY 31, 1997 JANUARY 31, 1996
---------------- -----------------
<S> <C> <C>
Gross premiums written $ 259,835 $ 295,894
Change in unearned premium (138,877) (191,272)
------------ ------------
Premiums earned 120,958 104,622
Premiums ceded 9,697 6,994
Change in prepaid premiums 3,184 (4,478)
------------ ------------
Premiums ceded 12,881 2,516
Net premiums earned 108,077 102,106
Net investment income 23,840 19,046
Net gains on investments 2,658 9,181
Exchange loss (6,886) (1,380)
Managing agency income 3,250 0
Other income 1,040 0
------------ ------------
Total Revenues $ 131,979 $ 128,953
============ ============
EXPENSES
Losses and loss expenses incurred $ 57,231 $ 53,698
Reinsurance recoveries (5,793) (494)
------------ ------------
Net losses and loss expenses incurred 51,438 53,204
Acquisition expenses 16,683 14,679
Managing agency expenses (13) 0
Operational expenses 9,430 3,256
------------ ------------
Total Expenses $ 77,538 $ 71,139
============ ============
Net income before tax
and minority interest $ 54,441 $ 57,814
Income tax (2,006) 0
Minority interest (432) 0
------------ ------------
Net income $ 52,003 $ 57,814
============ ============
PER SHARE DATA
Net income per ordinary share $ 1.43 $ 1.57
============ ============
Dividend per ordinary share $ 0.75 $ 0.25
============ ============
Weighted average number of
ordinary shares outstanding 36,314,837 36,884,643
============ ============
</TABLE>
See accompanying notes to consolidated financial statements
4
<PAGE> 5
MID OCEAN LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(THOUSANDS OF UNITED STATES DOLLARS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
CASH FLOWS FROM OPERATING ACTIVITIES JANUARY 31, 1997 JANUARY 31, 1996
---------------- ----------------
<S> <C> <C>
Net Income $ 52,003 $ 57,814
Adjustment to reconcile net income to cash provided
by operating activities:
Amortization of premiums on investments 1,866 2,244
Amortization of goodwill 455 113
Provision for depreciation 211 148
Share grants 119 0
Net gains on investments (2,658) (9,181)
Minority interest 432 0
Change in:
Accrued investment income 771 (3,618)
Reinsurance premiums receivable (104,102) (162,037)
Deferred acquisition costs (16,966) (25,390)
Outstanding losses recoverable from reinsurers 731 432
Prepaid reinsurance premium 11,318 (4,478)
Funds withheld by cedents (1,741) (357)
Other assets (3,385) (810)
Reserve for losses and loss expenses 12,793 24,257
Reserve for unearned premiums 129,687 190,525
Reinsurance balances payable (2,432) 0
Other liabilities (20,158) (1,906)
----------- ---------
Net cash provided by operating activities $ 58,944 $ 67,756
----------- ---------
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale and maturity of investments $ 1,277,931 $ 839,221
Purchase of investments available for sale (1,294,106) (888,723)
Deferred gains/(losses) on forward contracts 438 (1,347)
Net investment in Brockbank Group 0 (58,872)
----------- ---------
Net cash applied to investing activities $ (15,737) $(109,721)
----------- ---------
CASH FLOWS FROM FINANCING ACTIVITIES
Options exercised $ 61,301 $ 75
Repurchase of shares (10,214) 0
Dividends paid (28,458) (8,639)
----------- ---------
Net cash provided by/(applied to) financing activities $ 22,629 (8,564)
----------- ---------
FOREIGN CURRENCY TRANSLATION ADJUSTMENTS $ 4,817 0
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS $ 70,653 $ (50,529)
BALANCE AT BEGINNING OF PERIOD $ 163,968 $ 215,048
----------- ---------
CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 234,621 $ 164,519
=========== =========
</TABLE>
See accompanying note to consolidated financial statements
5
<PAGE> 6
MID OCEAN LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE A: BASIS OF PRESENTATION
The accompanying consolidated financial statements have not been audited except
for the balance sheet at October 31, 1996. In the opinion of the company's
management, the financial statements reflect all adjustments necessary to
present fairly the results of operations for the three month periods ended
January 31, 1997 and 1996, the financial position at January 31, 1997 and the
cash flows for the three month periods ended January 31, 1997 and 1996. The
results of operations for the three months ended January 31, 1997 are not
necessarily indicative of future financial results.
NOTE B: INVESTMENT IN SUBSIDIARY
The results of the Brockbank Group's fourth quarter ended December 31, 1996 have
been included in the Company's earnings for the quarter ended January 31, 1997.
6
<PAGE> 7
MID OCEAN LIMITED
MANAGEMENT DISCUSSION & ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
The following is a discussion of the Company's results of operations and
financial condition. This discussion and analysis should be read in conjunction
with the attached unaudited consolidated financial statements and notes thereto
of the Company for the quarter ended January 31, 1997 and the consolidated
financial statements for the year ended October 31, 1996 and the notes thereto
included in the Company's Annual Report on Form 10-K. The results of operations
for any fiscal period are not necessarily indicative of future financial
results. Unless otherwise indicated, reference to the Company includes Mid Ocean
Reinsurance Company Ltd, its wholly owned subsidiary ("Mid Ocean") and Mid
Ocean's 51% ownership of the Brockbank Group ("Brockbank").
RESULTS OF OPERATIONS
First Quarter ended January 31, 1997 compared with the First Quarter ended
January 31, 1996
Net income for the quarter was $52.0 million compared with $57.8 million for the
quarter ended January 31, 1996, a decrease of $5.8 million or 10.1%.
Net operating income, excluding net gains or losses on investments for the
quarter ended January 31, 1997 was $49.3 million compared with $48.6 million for
the quarter ended January 31, 1996, an increase of 1.5%.
The results of the Brockbank Group were first included in the Company's results
of operations in the Company's second quarter ended April 30, 1996. Accordingly,
there are no first quarter 1996 comparative results regarding the Brockbank
Group.
Revenues
The following table depicts the Company's revenues for the periods shown below:
7
<PAGE> 8
<TABLE>
<CAPTION>
QUARTER ENDED JANUARY 31
------------------------ PERCENT
1997 1996 CHANGE
---- ---- ------
<S> <C> <C> <C>
Dollars in thousands
Gross premiums written $ 259,835 $ 295,894 (12.2%)
Premiums ceded 9,697 6,994 38.6%
--------- --------- ----
Net premiums written $ 250,138 $ 288,900 (13.4%)
========= ========= ====
Net premiums earned 108,077 102,106 5.8%
Net investment income 23,840 19,046 25.2%
Net gains on investments 2,658 9,181 (71.0%)
Exchange loss (6,886) (1,380) --
Managing agency income 3,250 0 --
Other income 1,040 0 --
--------- --------- ----
Total revenues $ 131,979 $ 128,953 2.3%
========= ========= ====
</TABLE>
Gross premiums written for the quarter ended January 31, 1997 were $259.8
million compared with $295.9 million for the quarter ended January 31, 1996, a
decrease of $36.1 million or 12.2%.
The decrease results from a $65.8 million decline in the Company's business
underwritten from Bermuda. This was partially offset by $29.0 million
underwritten by Brockbank. Gross premiums written by the Company's London Branch
were $31.7 million which was approximately 2.1% above that written in the first
quarter 1996. There are no Singapore Branch premiums reported in the first
quarter 1997, as this entity will report on a calendar quarter basis and
therefore the results of their first quarter 1997 will be reported in the
Company's second quarter.
The decline in the business underwritten by Mid Ocean can be attributed in part
to a $7.3 million decrease in the excess of loss book. This includes a $12.9
million gross premium written in respect of coverage provided to the California
Earthquake Authority, which covers a two year period. The Company's property
catastrophe premiums were comparable with that written in the first quarter
1996. The risk excess book accounts for the majority of the decline.
There was also a $41.0 million decline in the Company's pro rata book of
business. Approximately $16.0 million of this decline is attributable to a
reduction in size of a reinsurance contract provided to a syndicate managed by
Brockbank. This contract resulted in gross premiums written during the first
quarter 1996 of $24.5 million. It was renewed in January 1997 at approximately
$8.5 million. The remaining decline of approximately $25.0 million can be
attributed to reduced monetary cessions on the part of many clients and the non
renewal of certain accounts.
The remainder of the decline is attributable to negative adjustments resulting
primarily from changes in estimates of gross premiums written on pro rata
business in previous underwriting years.
Premiums ceded for the quarter ended January 31, 1997 were $9.7 million compared
with $7.0 million for the quarter ended January 31, 1996. For the quarter ended
January 31, 1997, $7.9
8
<PAGE> 9
million is attributable to Brockbank and $1.8 million is attributable to Mid
Ocean.
Net premiums earned during the quarter ended January 31, 1997 were $108.1
million compared with $102.1 million during the quarter ended January 31, 1996,
an increase of $6.0 million or 5.8%. Approximately $82.5 million of net premiums
earned in the first quarter 1997 is attributable to the Mid Ocean book of
business and is comparable to the $102.1 million of net premiums earned during
the first quarter of 1996. Approximately $25.6 million of net premiums earned in
the first quarter 1997 is attributable to Brockbank.
The decrease in Mid Ocean's net premiums earned is largely attributable to the
adjustments in gross premiums written, as discussed above. These account for
approximately $12.8 million of negative adjustments to net premiums earned.
Net investment income was $23.8 million for the quarter ended January 31, 1997
compared with $19.0 million during the quarter ended January 31, 1996. The
increase results from a larger investment base and increased investment yields;
6.2% during the quarter ended January 31, 1997 compared with 5.9% during the
same quarter of 1996.
The exchange loss for quarter ended January 31, 1997 of $6.9 million, as
compared to $1.4 million for the quarter ended January 31, 1996, relates
primarily to the increase in the Sterling exchange rate on January 1, 1997, the
rate at which Mid Ocean's Sterling premiums written were renewed. As this
exchange rate subsequently declined at January 31, 1997, an exchange loss was
recorded.
Managing agency income reflects revenue earned by the Brockbank managing agency
in respect of its management of five Lloyd's underwriting syndicates, two of
which are dedicated corporate syndicates which are included in Mid Ocean's
operating results, as noted above, although agency income with respect to these
two syndicates has been eliminated on consolidation. Also included are earned
profit commissions which relate to the 1994 and 1995 underwriting years. Other
income of $1.0 million is fee income resulting from Brockbank's direct marketing
motor business.
As a result of the above, total revenues during the quarter ended January 31,
1997 were $132.0 million compared with $129.0 million for the first quarter of
1996, an increase of $3.0 million.
9
<PAGE> 10
Expenses
The following table sets forth the Company's combined ratio and components
thereof for the periods indicated:
<TABLE>
<CAPTION>
QUARTER ENDED JANUARY 31, PERCENT
1997 1996 CHANGE
---- ---- ------
<S> <C> <C> <C>
Net losses and loss expenses incurred $ 51,438 $ 53,204 (3.3%)
Acquisition expenses 16,683 14,679 13.7%
Operational expenses 9,430 3,256 189.6%
-------- -------- -----
Total underwriting expenses 26,113 17,935 45.6%
-------- -------- -----
Managing agency expenses (13) 0 --
-------- -------- -----
Total expenses $ 77,538 $ 71,139 9.0%
-------- -------- =====
Net loss and loss expense ratio 47.6% 52.1%
-------- --------
Acquisition expense ratio 15.5% 14.4%
Operational expense ratio 8.7% 3.2%
-------- --------
Underwriting expense ratio 24.2% 17.6%
-------- --------
Combined ratio 71.8% 69.7%
======== ========
</TABLE>
The Company incurred net losses and loss expenses during the quarter ended
January 31, 1997 of $51.4 million or 47.6% of net premiums earned compared with
$53.2 million or 52.1% of net premiums earned during the quarter ended January
31, 1996, a decrease of $1.8 million or 3.3%.
First quarter 1997 losses and loss expenses are comprised of $31.9 million
attributable to Mid Ocean's operations and $19.5 million attributable to the two
corporate syndicates managed by Brockbank. The $31.9 million attributable to Mid
Ocean represents a $21.3 million or approximately a 40% decline over Mid Ocean's
first quarter 1996 losses and loss expenses. The decline is attributable to both
a low level of loss activity and a reduction in reserves for business written in
prior years.
Underwriting expenses are comprised of acquisition expenses and operational
expenses Underwriting expenses for the quarter ended January 31, 1997, were
$26.1 million or 24.2% of net premiums earned, compared with $17.9 million or
17.6% of net premiums earned during the quarter ended January 31, 1996. This
represents an increase of $8.2 million which is primarily attributable to the
inclusion of underwriting expenses of the dedicated Lloyd's corporate capital
syndicates. The increase in the underwriting expense ratio results primarily
from operational expenses which have increased $6.2 million over the first
quarter 1996. Approximately $3.5 million of the increase is attributable to the
two corporate syndicates. The remaining $2.7 million of the increase is
attributable to Mid Ocean's operations which have increased in size in Bermuda
and now include the expenses of Mid Ocean's German consulting operation. In
addition, the first
10
<PAGE> 11
quarter 1996 expenses were reduced by a $1.5 million adjustment relating to the
capitalization of certain expenses incurred in the previous quarters relating to
the Brockbank acquisition. The remaining $2.0 million of the increase in
underwriting expenses is attributable to acquisition expenses.
Managing agency expenses reflect the cost of operating the Brockbank managing
agency. A portion of these costs are allocated to and recovered from the
syndicates under management (shown in revenues as managing agency income) based
on the underwriting capacity of each syndicate. The negative expense of $13
thousand results from an adjustment to certain expenses reported in the previous
three quarters, some of which have been reallocated directly to syndicates.
As a result of the above, total expenses for the quarter ended January 31, 1997
were $77.5 million compared with $71.1 million during the quarter ended January
31, 1996.
Net income before income tax and minority interest for the quarter ended January
31, 1997 was $54.4 million compared with $57.8 million for the quarter ended
January 31, 1996, a decrease of $3.4 million or 5.8%. Income tax of $2.0 million
represents the Company's estimate of tax liability in respect of the Company's
Branch and Brockbank Group in the United Kingdom.
Minority interest represents that portion of the Brockbank Group included in the
Company's results of operations, as described above, which belongs to the
minority shareholders of Brockbank.
The Company expects that the effects of inflation are unlikely to be a
significant factor in the results of operations given the short term nature of
both reinsurance premiums receivable and expected loss payments from reserves
for losses and loss expenses.
FINANCIAL CONDITION AND LIQUIDITY
As a holding company, the Company's assets consist of its investment in the
stock of Mid Ocean. The Company relies primarily on cash dividends from Mid
Ocean to the Company, which are restricted to retained earnings and could be
further limited under Bermuda insurance law. The Insurance Act of 1978 of
Bermuda, as amended by the Insurance Amendment Act of 1995 of Bermuda, requires
Mid Ocean to maintain a minimum solvency margin and minimum liquidity ratio.
Provisions of the above noted Acts are not expected to limit payment of any
required dividends from retained earnings by Mid Ocean to the Company.
At January 31, 1997, shareholders' equity was $1,185.8 million, of which $503.9
million was retained earnings. At January 31, 1997, Mid Ocean held $234.6
million of cash and cash equivalents compared with $164.0 million at October 31,
1996. The increase is attributable to Mid Ocean's internally managed portfolio
which is structured to achieve a relatively short duration.
The Company has no debt.
Net cash flow provided by operating activities for the quarter ended January 31,
1997 was $58.9 million compared with $67.8 million for the first quarter of
1996. This results primarily from receipt of premium income net of paid losses,
acquisition costs and other related expenses. Mid
11
<PAGE> 12
Ocean expects cash flows will continue to be strong, primarily as a result of
net reinsurance premium receipts and investment income. Mid Ocean is unable to
predict its cash outflows, as they will be substantially determined by loss
payments and particularly large catastrophes if they occur. As a consequence,
cash flow may fluctuate between individual fiscal quarters and fiscal years.
During the quarter ended January 31, 1997, the Company repurchased 200,000
shares at an average price of $51.07. In addition, $61.3 million was received in
respect of the exercise of 3,643,462 options in the quarter ended January 31,
1997.
Primarily because of the potential for large loss payments, Mid Ocean's
investment portfolio is structured to provide a high level of liquidity to meet
its obligations. At January 31, 1997, Mid Ocean's investment portfolio, measured
at fair value, including accrued investment income and trades pending settlement
and cash and cash equivalents, was $1,611.3 million compared with $1,531.3
million at October 31, 1996. The investment portfolio is presently made up of
bonds, mortgage and asset-backed securities and short-term investments. At
January 31, 1997, 87.0% of the fair value of securities held was in US
Government securities or in obligations rated "AA" or better by Moody's Investor
Services Inc or Standard & Poor's Corporation, compared with 92.8% at October
31, 1996.
The Company presently has no investments in real estate or mortgage loans. All
fixed maturity and short-term investments are currently classified as securities
available for sale and are carried at fair value.
Under the terms of certain reinsurance contracts, Mid Ocean is required to
provide letters of credit to reinsureds in respect of reported claims and/or
unearned premiums. Mid Ocean has a letter of credit facility of $280 million.
This facility is secured by a lien on a portion of Mid Ocean's investment
portfolio. At January 31, 1997, Mid Ocean had provided letters of credit
amounting to $229.1 million compared with $164.8 million at October 31, 1996.
Letters of credit are required by certain ceding companies to support unearned
premiums and loss reserves. Included in the total noted above are letters of
credit in the amount of $106.1 million which were issued in lieu of capital to
support the two Lloyd's corporate syndicates managed by Brockbank.
On December 29, 1995, Mid Ocean completed a transaction to acquire an effective
51% ownership of the Brockbank Group. The Company has undertaken to make an
offer by September 1, 1997, based on a valuation pursuant to a specified
procedure by an independent banking firm, to acquire all outstanding Brockbank
shares for either cash, loan notes or ordinary shares in the Company.
The Company has made no significant capital expenditures during the quarter
ended January 31, 1997. The Company has committed to invest up to $18.7 million,
principally as a special limited partner in The Trident Partnership L.P.
("Trident"), a limited partnership organized for investment in the insurance
industry. At January 31, 1997 and October 31, 1996, the investment in Trident
was $7.9 million.
12
<PAGE> 13
PART II OTHER INFORMATION
MID OCEAN LIMITED
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
No reports on Form 8-K were filed during the three months ended January 31,
1997.
13
<PAGE> 14
EXHIBIT 11
MID OCEAN LIMITED
COMPUTATIONS OF EARNINGS PER SHARE
(UNAUDITED)
(Thousands of US Dollars except share and per share amounts)
<TABLE>
<CAPTION>
THREE MONTHS ENDED
JANUARY 31, 1997 JANUARY 31, 1996
- -----------------------------------------------------------------------------------------------
<S> <C> <C>
Net Income $ 52,003 $ 57,814
=========== ===========
Weighted average ordinary shares outstanding 35,982,820 34,556,594
Common share equivalents associated with options 332,017 2,328,049
----------- -----------
Weighted average ordinary shares
and ordinary share equivalents outstanding 36,314,837 36,884,643
=========== ===========
Earnings per ordinary share and ordinary share equivalent $ 1.43 $ 1.57
=========== ===========
</TABLE>
14
<PAGE> 15
MID OCEAN LIMITED
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
MID OCEAN LIMITED
------------------------------------------
(Registrant)
/s/ CHARLES F HAYS
------------------------------------------
CHARLES F HAYS
Senior Vice President,
Chief Financial and Administrative Officer
(Principal Financial Officer
and Duly Authorized Officer)
/s/ JOHN M WADSON
------------------------------------------
JOHN M WADSON
Vice President, Treasurer and Secretary
(Principal Accounting Officer
and Duly Authorized Officer)
Date: March 17, 1997
15
<TABLE> <S> <C>
<ARTICLE> 7
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> JAN-31-1997
<DEBT-HELD-FOR-SALE> 1,344,402<F1>
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 0
<MORTGAGE> 0
<REAL-ESTATE> 0
<TOTAL-INVEST> 1,406,370
<CASH> 234,621
<RECOVER-REINSURE> 0
<DEFERRED-ACQUISITION> 61,238
<TOTAL-ASSETS> 2,256,952
<POLICY-LOSSES> 446,160<F2>
<UNEARNED-PREMIUMS> 450,816<F3>
<POLICY-OTHER> 0
<POLICY-HOLDER-FUNDS> 0
<NOTES-PAYABLE> 0
0
0
<COMMON> 683,015<F4>
<OTHER-SE> 502,794<F5>
<TOTAL-LIABILITY-AND-EQUITY> 2,256,952
108,077
<INVESTMENT-INCOME> 23,840
<INVESTMENT-GAINS> 2,658
<OTHER-INCOME> (2,596)
<BENEFITS> 51,438
<UNDERWRITING-AMORTIZATION> 16,683
<UNDERWRITING-OTHER> 9,417
<INCOME-PRETAX> 54,441
<INCOME-TAX> 2,006
<INCOME-CONTINUING> 52,003
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 52,003
<EPS-PRIMARY> 1.43
<EPS-DILUTED> 0
<RESERVE-OPEN> 0
<PROVISION-CURRENT> 0
<PROVISION-PRIOR> 0
<PAYMENTS-CURRENT> 0
<PAYMENTS-PRIOR> 0
<RESERVE-CLOSE> 0
<CUMULATIVE-DEFICIENCY> 0
<FN>
<F1>DEBT-HELD-FOR-SALE REPRESENTS FIXED MATURITY INVESTMENTS AVAILABLE FOR
SALE. THESE ARE CARRIED AT MARKET VALUE.
<F2>POLICY-LOSSES EXCLUDE THE REDUCTION FOR OUTSTANDING LOSSES RECOVERABLE
FROM REINSURERS ($7,178) WHICH IS INCLUDED IN TOTAL ASSETS.
<F3>UNEARNED-PREMIUMS EXCLUDE THE REDUCTION FOR PREPAID REINSURANCE PREMIUM
($14,291) WHICH IS INCLUDED IN TOTAL ASSETS.
<F4>COMMON INCLUDES ORDINARY SHARES OF $7,569 AND ADDITIONAL PAID IN CAPITAL
$675,446
<F5>OTHER-SE INCLUDES RETAINED EARNINGS, NET UNREALIZED APPRECIATION ON
INVESTMENTS, FOREIGN CURRENCY TRANSLATION ADJUSTMENTS AND DEFERRED
COMPENSATION.
</FN>
</TABLE>
