UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                            WASHINGTON, D. C.  20549
                                    FORM 10-Q

(Mark One)
[X]  QUARTERLY REPORT UNDER  SECTION 13 OR 15(D) OF  THE SECURITIES EXCHANGE ACT
     OF 1934


                    FOR THE QUARTER ENDED SEPTEMBER 30, 1995


[ ]  TRANSITION  REPORT  PURSUANT  TO SECTION  13  OR  15(D)  OF THE  SECURITIES
     EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM  ____________ TO  ____________

COMMISSION FILE NUMBER   0-8162

                         ACCEL INTERNATIONAL CORPORATION
             (Exact name of registrant as specified in its charter)

          DELAWARE                                          31-0788334
(State or other jurisdiction of                        (I.R.S. Employer
 incorporation or organization)                        Identification No.)


  475 METRO PLACE NORTH, DUBLIN, OHIO                         43017
(Address of principal executive offices)                    (Zip Code)

                                  614-764-7000
                         (Registrant's Telephone Number)


SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:  None

SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:

                               Title of each class
                          COMMON STOCK, $.10 PAR VALUE

Indicate  by check mark if disclosure of  delinquent filers pursuant to Item 405
of Regulations S-K  is not contained herein,  and will not be  contained, to the
best of  registrant's knowledge, in  definitive proxy or  information statements
incorporated by reference in Part III of this Form 10-Q or any amendment to this
Form 10-Q. _____

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  October 31, 1995, there  were 4,446,432 shares of Common  Stock, $.10 par
value per Share outstanding.



                                                      COMMISSION FILE NO. 0-8162




                ACCEL INTERNATIONAL CORPORATION AND SUBSIDIARIES


                               SEPTEMBER 30, 1995

                                      INDEX



PART I    FINANCIAL INFORMATION

Item 1.   Financial Statements                                             Page 

          Unaudited Consolidated Balance Sheets
            (September 30, 1995 and December 31, 1994)                    1 -  2

          Unaudited Consolidated Statements of Operations (Nine months
            ended September 30, 1995 and 1994)                                 3

          Unaudited Consolidated Statements of Common Stockholders'
            Equity (Nine months ended September 30, 1995 and year
            ended December 31, 1994)                                           4

          Unaudited Consolidated Statements of Cash Flows (Nine months
            ended September 30, 1995 and 1994)                                 5

          Notes to Unaudited Consolidated Financial Statements            6 - 11

Item 2.   Management's Discussion and Analysis of Financial
            Condition and Results of Operations                          12 - 17


PART II   OTHER INFORMATION

Item 6.   Exhibits and Reports on Form 8-K                                    18

                ACCEL INTERNATIONAL CORPORATION AND SUBSIDIARIES

                     UNAUDITED CONSOLIDATED BALANCE SHEETS 

                                                    September 30, December 31,
                                                       1995         1994  
                                                      --------    --------
                                                     (Thousands of dollars)
ASSETS

Investments:
  Investments available for sale, at fair value:
   Fixed maturities (cost: 1995--$72,891,000;
     1994--$91,422,000)                              $ 72,017     $84,782
   Equity securities (cost: 1995--$4,949,000;
     1994--$5,191,000)                                  4,960       5,159
   Short-term investments (cost: 1995--$24,906,000;
     1994--$7,684,000)                                 24,944       7,684
   Other invested assets (cost: 1995--$371,000;
     1994--$564,000)                                      358         564
                                                    ---------    ---------
                                                      102,279      98,189

Cash                                                      494       1,044

Receivables:
  Premiums in process of transmittal, less
   allowance (1995--$304,000; 1994--$255,000)           3,021       3,592
  Amounts due from reinsurers                           9,131       7,826
                                                    ---------     --------
                                                       12,152      11,418

Accrued investment income                                 691         807


Prepaid reinsurance premiums                           16,267      18,707
                                  
Reinsurance premium deposits                           12,044      12,345

Deferred policy acquisition costs                      32,334      31,089

Equipment--at cost, less accumulated
  depreciation (1995--$511,000;
  1994--$628,000)                                         142         232


Property occupied by the Company--at cost, less
  accumulated depreciation (1995--$2,343,000;
  1994--$2,138,000)                                     3,206       3,303


Other assets:
  Cost in excess of fair value of net
   assets of subsidiaries at dates of
   acquisition ($4,448,000) less
   accumulated amortization                               849         929
  Funds held under reinsurance agreements                 978       1,098
  Other                                                   507         787
                                                    ---------    ---------
                                                        2,334       2,814
                                                    ---------    ---------
                                                    $ 181,943   $ 179,948

                                                                     (Continued)


                ACCEL INTERNATIONAL CORPORATION AND SUBSIDIARIES

               UNAUDITED CONSOLIDATED BALANCE SHEETS--(CONTINUED)


                                                    September 30,  December 31,
                                                       1995            1994  
                                                     --------        --------
                                                      (Thousands of dollars) 

LIABILITIES AND COMMON STOCKHOLDERS' EQUITY

Policy Reserves and Liabilities:
  Unearned premium reserves                          $ 84,281    $ 83,762
  Insurance claims                                     21,279      23,159
  Other                                                    13          15
                                                    ---------    ---------
                                                      105,573     106,936

Other Liabilities:
  Funds held under reinsurance agreements               3,132       3,633
  Accounts payable and other liabilities                1,870       2,257
  Commissions payable                                   4,606       4,015
  Amounts due reinsurers                                4,396       6,459
  Federal income taxes:
   Current                                                  -          52
   Deferred                                             4,974       4,938
  Deferred reinsurance commissions                     16,581      17,830
  Notes payable--Note D                                18,684      18,462
                                                    ---------    ---------
                                                       54,243      57,646

Commitments and Contingencies--Note E

Redeemable Preferred Stock:


  Authorized shares--1,000,000;
   no issued or outstanding shares                          -           -

Common Stockholders' Equity:
  Common Stock, $.10 par value
   Authorized shares--10,000,000
   Issued shares--5,243,852                               524         524
  Additional paid-in capital                           24,066      24,066
  Retained earnings                                     5,591       4,759
  Less 797,420 treasury shares at cost                 (6,599)     (6,599)
  ESOP loan                                              (551)       (627)
  Net unrealized depreciation on
   investment securities                                 (838)     (6,672)
  Foreign currency translation adjustments--Note B
                                                          (66)        (85)
                                                    ---------    --------- 
   Total Common Stockholders' Equity                   22,127      15,366
                                                    ---------    ---------
                                                     $181,943    $179,948


See notes to unaudited consolidated financial statements.



                ACCEL INTERNATIONAL CORPORATION AND SUBSIDIARIES 
                                                                                
                UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS 

                                  Three Months Ended  Nine Months Ended
                                     September 30,      September 30,
                                    1995      1994     1995      1994   
                                   ------------------ -------------------
                                 (Thousands of dollars, except per share data)

REVENUE:
  Gross premiums written--Note F $ 15,297  $11,188   $43,669  $44,784
  Less reinsurance ceded--Note F    3,413   (2,034)   10,454    6,548
                                --------- -------- --------- ---------
   Net premiums written            11,884   13,222    33,215   38,236
  Increase in unearned
   premium reserves                (1,563)  (1,992)   (3,274)  (2,638)
                                ---------   ------ --------- --------- 
   Premiums earned--Note F         10,321   11,230    29,941   35,598
  Net investment income:
   Interest and dividends           1,556    1,479     4,644    4,951
   Realized gains (losses)             24      (11)      303      759
  Service fees on extended
   service contracts                  594      578     1,645    1,535
  Other income                        253       66       375      354
                                --------- -------- --------- ---------
                                   12,748   13,342    36,908   43,197

BENEFITS AND EXPENSES:
  Policy benefits--Note F           4,820    5,626    12,931   18,904
  Commissions and selling expenses  5,873    3,366    16,689   14,294
  Reinsurance expense recovery       (454)     118      (710)  (1,316)
  General and administrative        1,807    2,380     5,348    7,024
  Taxes, licenses and fees            437      416     1,398    1,498
  Interest                            414      410     1,288    1,187
  Decrease (increase) in deferred
   policy acquisition costs          (624)   1,577    (1,245)   2,100
  Loss on write off of
   subsidiary--Note G                   -        -         -    3,829
                                --------- -------- --------- ---------
                                   12,273   13,893    35,699   47,520
                                --------- -------- --------- ---------


   INCOME (LOSS) BEFORE
     FEDERAL INCOME TAX               475     (551)    1,209   (4,323)

Federal income tax:
  Current                              84       14       341      116
  Deferred                            226       97        36      212
                                --------- -------- --------- ---------
                                      310      111       377      328
                                --------- -------- --------- ---------

   NET INCOME (LOSS)             $    165  $  (662)  $   832  $(4,651)

Per Common Share:
  Net Income (Loss)              $    .04  $  (.15)  $   .19  $ (1.05)

Weighted average number of common
  shares outstanding            4,446,432 4,446,432 4,446,432 4,446,432


See notes to unaudited consolidated financial statements.

<TABLE>
                                         ACCEL INTERNATIONAL CORPORATION AND SUBSIDIARIES

                                 UNAUDITED CONSOLIDATED STATEMENTS OF COMMON STOCKHOLDERS' EQUITY 


<CAPTION>
                                                                                       Net
                                                                                    unrealized
                                                                                   appreciation   Foreign
                                                                 Common              (depreci-    currency
                                         Additional              stock               ation) on   translation
                                  Common   paid-in    Retained   held in       ESOP  investment    adjust-
                                  stock    capital    earnings   treasury      loan  securities    ments   Total 
                                  -----    -------    --------   --------      ----  ----------    -----  -------
                                                                 (Thousands of dollars)

<S>                               <C>      <C>        <C>       <C>           <C>       <C>       <C>     <C>
Balances at December 31, 1993     $  524   $ 24,066   $ 9,997   $   (6,599)   $  (720)  $ 1,496   $(181)  $  28,583
    Payments on ESOP loan              -          -         -            -         93         -       -          93
    Change in net unrealized
       depreciation on
       equity securities               -          -         -            -          -    (8,168)      -      (8,168)
    Change in foreign currency
       translation adjustment          -          -         -            -          -         -      96          96
    Net loss                           -          -    (5,238)           -          -         -       -      (5,238)
                                   -----    -------  --------     --------    -------   -------  ------    --------
Balances at December 31, 1994        524     24,066     4,759       (6,599)      (627)   (6,672)    (85)     15,366
    Payments on ESOP loan              -          -         -            -         76         -       -          76
    Change in net unrealized
       depreciation on
       equity securities               -          -         -            -          -     5,834       -       5,834
    Change in foreign currency
       translation adjustment          -          -         -            -          -         -      19          19
    Net income                         -          -       832            -          -         -       -         832
                                  ------   --------   -------     --------    -------   -------  ------    --------
Balances at September 30, 1995    $  524   $ 24,066   $ 5,591   $   (6,599)   $  (551)  $  (838)  $ (66)  $  22,127

<FN>
See notes to unaudited consolidated financial statements.
</TABLE>

                ACCEL INTERNATIONAL CORPORATION AND SUBSIDIARIES 
                                                                                


                UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS 

                                                     Nine Months Ended
                                                       September 30,
                                                    1995            1994  
                                                  ----------     ---------
                                                  (Thousands of dollars)
OPERATING ACTIVITIES: 
  Net Income (Loss)                             $     832    $ (4,651)
  Adjustments to reconcile net income (loss)
   to net cash used in operating activities: 
     Change in premiums receivable                    522       2,629
     Change in accrued investment income              116         195
     Change in prepaid reinsurance premiums         2,440      10,922
     Change in reinsurance premium deposit            301        (134)
     Change in unearned premium reserves              519      (7,526)
     Change in claim reserves                      (1,880)    (12,633)
     Change in amounts due reinsurers
        and amounts due from reinsurers            (3,368)      4,634
     Change in funds held under reinsurance
        agreements                                   (381)       (976)
     Change in other assets, other liabilities,
        and accrued income taxes                      581      (1,025)
     Interest paid in kind                            422         381
     Accrual of discount on bonds                     (85)       (109)
     Amortization of premium on bonds                  61          95
     Amortization of deferred policy acquisition 
        costs                                      15,286      18,419
     Policy acquisition costs deferred            (16,567)    (16,319)
     Reinsurance commissions earned               (10,189)     (9,625)
     Reinsurance commissions received               8,940       6,877
     Provision for depreciation and amortization      312         407
     Write off of subsidiary                            -       3,829
     Net realized gains on investments               (303)       (759)
                                                 --------     -------- 
NET CASH USED IN OPERATING ACTIVITIES              (2,441)     (5,369)
INVESTING ACTIVITIES:
  INVESTMENTS - AVAILABLE FOR SALE:
   Sale of investments                             25,137      35,725
   Purchase of investments                        (23,079)    (32,161)
   Other, net                                         (43)        (59)
                                                 --------     -------- 
NET CASH PROVIDED BY INVESTING ACTIVITIES           2,015       3,505
FINANCING ACTIVITIES:
  Payment on ESOP loan                                 76          69
  Repayment of notes payable                         (200)          -
  Debentures redeemed                                   -        (900)
                                                 --------     -------- 
NET CASH USED IN FINANCING ACTIVITIES                (124)       (831)
                                                 --------     -------- 
  NET DECREASE IN CASH                               (550)     (2,695)
Cash at beginning of period                         1,044       2,765
                                                 --------     --------
CASH AT END OF PERIOD                            $    494    $     70


See notes to unaudited consolidated financial statements.


                ACCEL INTERNATIONAL CORPORATION AND SUBSIDIARIES

              NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

                               SEPTEMBER 30, 1995


NOTE A--BASIS OF PRESENTATION AND ACCOUNTING POLICIES

Basis  of  Presentation:    The accompanying  unaudited  consolidated  financial
statements  of  ACCEL  International  Corporation   ("ACCEL")  and  subsidiaries
(collectively  referred  to  herein as  the  "Company")  have  been prepared  in
accordance with  generally accepted accounting principles  for interim financial
information and with the instructions to Form 10-Q and Article  10 of Regulation
S-X  which, as  to the insurance  company subsidiaries, differ  in some respects
from statutory accounting  practices prescribed or permitted  by state insurance
departments.   Accordingly,  they  do not  include all  of  the information  and
footnotes  required by  generally  accepted accounting  principles for  complete
financial statements.  In the opinion of management, all adjustments (consisting
of  normal recurring accruals) considered necessary for a fair presentation have
been included.   Operating results for all periods presented are not necessarily
indicative of the results that may be  expected for the full year.  For  further
information,  refer  to  the  consolidated financial  statements  and  footnotes
thereto included  the Company's annual  report on Form  10-K for the  year ended
December 31, 1994.

Principles of  Consolidation:   The unaudited consolidated  financial statements
include  the accounts  of ACCEL  and its  wholly-owned subsidiaries,  except for
Randjill Group  Ltd.  ("RGL") (see  Note G  of Notes  to Unaudited  Consolidated
Financial Statements).   All significant intercompany accounts  and transactions
with   consolidated  subsidiaries   have  been   eliminated  in   the  unaudited
consolidated financial statements.

Reclassification:  Certain amounts in  the 1994 unaudited consolidated financial
statements have been reclassified to conform with the 1995 presentation.

Federal Income  Taxes:  Deferred taxes are provided for the effects of temporary
differences  in  reporting income  for  tax  purposes  and  financial  reporting
purposes.

Earnings Per Common  Share:  Earnings  per common share  are computed using  the
weighted average  number of common  shares outstanding during  the period.   The
inclusion of common stock equivalents (options) would not be dilutive.

Investment Portfolio - Valuation:  When an other than temporary decline in value
is  recognized, the specific investment is carried at estimated realizable value
and  its  original book  value  is reduced  to  reflect such  impairment  of the
investment.   Such reductions in book value are reflected in realized investment
losses for  the period in  which they  were written down.   For mortgage  backed
securities,  the  Company's  accounting  follows  the  provisions  of  Financial
Accounting Standards  Board Emerging Issues  Tasks Force ("EITF")  Consensus No.
93-18.  This EITF requires that when the present value of estimated  future cash
flows  discounted at a risk-free rate  of return is less than  the cost basis of
the investment an impairment loss is  to be recognized by writing the investment
down to its fair value.



                ACCEL INTERNATIONAL CORPORATION AND SUBSIDIARIES

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS-(CONTINUED)

                               SEPTEMBER 30, 1995


NOTE B--FOREIGN CURRENCY TRANSLATION

The financial  statements of Acceleration Insurance Company  Limited ("AICL"), a
United  Kingdom subsidiary,  have been  translated into  U.S. dollars  using the
British pound as the functional currency.  The balance sheets of  AICL have been
translated into  U.S. Dollars  using exchange  rates at  September 30, 1995  and
December  31, 1994,   respectively.   The  operating results  of AICL  have been
translated into U.S. dollars using  the average exchange rates in effect  during


the respective periods.

Included  in foreign  currency translation  adjustments are  unrealized exchange
gains of $19,000 in 1995 and unrealized exchange losses of $96,000 in 1994.

NOTE C--FEDERAL INCOME TAXES

The Company files  a consolidated federal income tax return.   The provision for
income  taxes is  based  on  income  for  financial  reporting  purposes,  after
permanent differences.

NOTE D--NOTES PAYABLE

In July 1991, ACCEL  issued $5,848,000 of subordinated notes  (the "Subordinated
Notes") in  connection with the purchase of all outstanding common shares of RGL
(see  Note G).  The Subordinated  Notes have a nine-year  term with no principal
payable until maturity, and bear interest  at 10.125% per annum.  Effective June
30, 1992, ACCEL amended the notes to permit the issuance of additional notes for
the purpose  of making interest payments,  provided, however, that  ACCEL may at
its  option pay cash in lieu of  issuing additional notes in any denomination of
less than  $1,000.  As a result, ACCEL issued additional notes totaling $422,000
and $515,000 for the nine months of 1995 and the full year 1994, respectively.

Of the Subordinated Notes  described above, $5,371,000 were initially  issued to
Ranger Insurance Company ("Ranger"), a company related through common  ownership
by a stockholder  and director of the Company.  In  1993, Ranger sold all of the
Subordinated  Notes held by it to Chase Insurance Holdings Corporation ("CIHC"),
another company related through  common ownership by a stockholder  and director
of the  Company.  Additional  Subordinated Notes in  the amount of  $375,000 and
$458,000 were issued as interest payments to related parties for the nine months
of 1995 and the full year 1994, respectively.  

Pursuant to a transaction authorized and approved by ACCEL's Board of Directors,
and effective December  31, 1993, the  Company sold its investment  in Selective
American  Financial Enterprises,  Inc.  ("SAFE"),  a  company  controlled  by  a
stockholder  and director of the  Company, in exchange  for $2,010,000 principal
amount  of the  Subordinated Notes,  effective as  of December  31, 1993.   Such
amount of the Subordinated  Notes held by CIHC were cancelled  concurrently with
the completion of the  sale of the SAFE shares  as of December 31, 1993.   After
giving  effect to the foregoing  transaction, the total outstanding Subordinated
Notes  were $5,884,000 and $5,462,000 ($5,216,000 and $4,841,000 held by related
parties) at September 30, 1995 and December 31, 1994, respectively.


                ACCEL INTERNATIONAL CORPORATION AND SUBSIDIARIES

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS-(CONTINUED)

                               SEPTEMBER 30, 1995


NOTE D--NOTES PAYABLE--(CONTINUED)

During  1991,  the  Company  renegotiated  its  credit  agreement  (the  "Credit
Agreement") with a bank and borrowed an additional $5,900,000 bringing the total
outstanding  under  the Credit  Agreement to  $15,000,000.   That  agreement was
subsequently  renegotiated  to  a  commitment  limit  of  $14,000,000  effective
December  31, 1992.   During the first  quarter of 1993,  ACCEL made a principal
payment of $1,000,000.

During  1993, the  Company did not  meet all  the requirements  contained in the
various financial tests under  the covenants contained in the  Credit Agreement.
On  March 30,  1994, the  bank and  the Company  agreed to  a waiver  of certain
covenants of the  Credit Agreement such that the Company would not be in default
at December 31,  1993 and  through January  1, 1995.   The  loan agreement  also
requires  that during the  period the loan is  outstanding, the Company maintain


consolidated  tangible net worth, as defined in  the agreement.  At December 31,
1993, required tangible net worth was $27,500,000. 
At December 31, 1993, the Company's consolidated tangible net worth, as defined,
was $27,549,000.

During  September  1994, the  revolving loans  under  the Credit  Agreement were
converted to a $13,000,000 term loan, payable in full on September 23, 1998.

On February  7, 1995 the Company renegotiated the terms of its Credit Agreement.
Under the amended Credit  Agreement, the quarterly principal  payments scheduled
to begin in the fourth quarter of 1994 were waived.  Specific principal payments
totaling up to  $1.5 million  are due on  June 30, 1995  and December 31,  1995,
respectively, from the liquidation of AICL and the  sale of the building used as
the corporate home office.   During the second quarter  of 1995, ACCEL made  the
required  principal   payment  of   $200,000,  reducing  the   outstanding  bank
indebtedness to $12,800,000.  The loan is payable in  full on June 30, 1997.  On
or  prior to  that  date, the  Company  also is  committed  to complete  certain
actions.   These include pursuing  capital transactions with  other companies or
the sale of significant operating  assets that will permit it to pay the loan in
full by June 30, 1997.  Alternatively, in the case of a merger or  other capital
transaction, the  agreement can provide for the modification of the terms of the
Credit Agreement in  a manner satisfactory  to the bank.   The Credit  Agreement
also  requires  that during  the  period the  loan  is outstanding,  the Company
maintain consolidated  tangible net  worth, as  defined  in the  agreement.   At
September 30, 1995, required tangible net  worth was $13,416,000.  At  September
30,  1995,  the  Company's consolidated  tangible  net  worth,  as defined,  was
$21,278,000.   Accordingly, as of September  30, 1995, the loan  was current and
all covenants under the amended Credit Agreement were satisfied.

NOTE E--COMMITMENTS AND CONTINGENCIES

Due  to the nature  of its operations,  the Company is  at all times  subject to
pending  and threatened legal  actions which arise  in the normal  course of its
activities.  In  management's opinion, based  on the advice of  outside counsel,
the unaudited consolidated financial statements would not be materially affected
by the ultimate outcome of any legal proceedings or contingent liabilities.


                ACCEL INTERNATIONAL CORPORATION AND SUBSIDIARIES

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS-(CONTINUED)

                               SEPTEMBER 30, 1995


NOTE F--REINSURANCE

The following  data  summarizes certain  aspects  of the  Company's  reinsurance
activity for the periods presented.

Premiums written and earned in 1995 and 1994 are summarized as follows:


               WRITTEN                                      EARNED            
    ----------------------------------        --------------------------------
                          Period Ended September 30,    
                       ----------------------------------
            Nine Months     Three Months         Nine Months     Three Months
              Ended            Ended               Ended            Ended
           1995    1994     1995   1994         1995     1994    1995    1994
           ----     ----    ----   ----         ----     ----    ----    ----
                                   (In thousands)


Direct   $39,145 $39,385  $13,527 $ 9,012     $38,444 $46,567 $13,849  $13,398
Assumed    4,524   5,399    1,770   2,176       4,645   4,581   1,732    1,721
Ceded     10,454   6,548    3,413  (2,034)     13,148  15,550   5,260    3,889
        -------- ------- -------- -------    -------- ------- ------- --------
Net      $33,215 $38,236  $11,884 $13,222     $29,941 $35,598 $10,321  $11,230


Policy benefits incurred for the periods presented are as follows:

                       Nine Months Ended   Three Months Ended 
                      -------------------   -------------------
                       1995         1994       1995      1994 
                      -------     -------     -------   -------
                                   (In thousands)
Direct                $18,494     $25,228     $ 6,385   $ 7,988
Assumed                 2,680       2,625       1,026     1,002
Ceded                   8,243       8,949       2,591     3,364
                      -------   ---------   ---------    ------
Net                   $12,931     $18,904     $ 4,820   $ 5,626


NOTE G--WRITE OFF OF INVESTMENT IN RGL AND GALAXY

During December 1986, the  Company invested $1,370,000 (a 20% interest)  in RGL.
RGL  was formed  to  acquire all  the outstanding  shares of  Galaxy Reinsurance
Company (the name was ultimately changed to Galaxy Insurance Company ("Galaxy"),
a New  York domiciled  property  and casualty  insurance  company.   Galaxy  was
writing commercial property insurance, property and casualty, and assumed treaty
reinsurance.

                ACCEL INTERNATIONAL CORPORATION AND SUBSIDIARIES

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS-(CONTINUED)

                               SEPTEMBER 30, 1995


NOTE G--WRITE OFF OF INVESTMENT IN RGL AND GALAXY--(CONTINUED)

During  the second  quarter of  1991, ACCEL  purchased 11,000  additional common
shares  of RGL  at a  cost  of $992,000.   The  additional investment  increased
ACCEL's ownership  to 31% at June 30,  1991.  In July  1991, ACCEL purchased the
remaining 69%  of RGL  for cash  and subordinated  notes (See  Note  D) of  $2.1
million and $5.8 million, respectively.  The purchase price included goodwill of
$1.2 million.

Members of CIHC held a 45% interest in RGL prior to the acquisition by ACCEL.

For the three  years ended December  31, 1993 RGL  recorded losses and  Galaxy's
underwriting  results deteriorated.  The statutory capital and surplus of Galaxy
declined significantly  (from $7.3 million  to $6.1  million to $2.9  million at
December 31,  1991,  1992 and  1993, respectively),  resulting in  the New  York
Department of Insurance ("New York Department") placing a moratorium on  all new
business as of February 28, 1994.

As a  result of the  unsatisfactory underwriting  performance of Galaxy  and the
moratorium  placed  on  Galaxy's  underwriting   operations  by  the  New   York
Department,  ACCEL  elected to  write-off  the unamortized  goodwill  related to
Galaxy, which resulted  in a  charge to operations  (general and  administrative
expenses) for  1993 of $1,643,000.   Due to significant  loss development during
1994  on  Galaxy's  liability  lines  of  business,  ACCEL  contracted  with  an
independent actuarial consultant  to review  the adequacy of  Galaxy's loss  and
loss adjustment expense  reserves as  of June 30,  1994.   The findings of  this


review  indicated the  need  for  additional  reserves  which  resulted  in  the
statutory insolvency of Galaxy at June  30, 1994.  Statutory capital and surplus
after the reserve strengthening was a negative $2.3 million.

Due to the significance of the statutory loss and the loss of ACCEL's control of
Galaxy as  a result  of the insolvency,  ACCEL wrote  off its investment  in RGL
($3.8 million) during  the second quarter of 1994.  As  a result of this action,
the unaudited  consolidated results of operations  for 1994 include  a charge to
operations of $3.8 million,  representing ACCEL's net investment in Galaxy as of
April  1, 1994, in addition to operating  losses of $205,000 incurred during the
first quarter  of  1994.    ACCEL  wrote  its investment  in  RGL  to  zero  and
deconsolidated RGL as of April 1, 1994.

Pursuant to an Order of Liquidation dated October 7, 1994, issued by the Supreme
Court of  the  State  of New  York,  the  Liquidation Bureau  of  the  New  York
Department took control of Galaxy on October 11, 1994.

Acceleration National Insurance  Company ("ANIC"), a wholly  owned subsidiary of
ACCEL, in the normal course  of business, issued certain policy  endorsements on
Galaxy policies in 1992, some  of which had pending  claims open at the time  of
liquidation.   Management  believes  that these  endorsements  will not  have  a
material impact on the Company's financial condition.  As of September 30, 1995,
ANIC had not incurred any costs related to these endorsements.



                ACCEL INTERNATIONAL CORPORATION AND SUBSIDIARIES

        NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS-(CONTINUED)

                               SEPTEMBER 30, 1995


NOTE H--AGREEMENT WITH CONSUMERS FINANCIAL CORPORATION

On  August 18,  1995,  ACCEL and  Consumers  Financial Corporation,  Camp  Hill,
Pennsylvania ("Consumers") announced that  they entered into a letter  of intent
for  Consumers to acquire the in-force credit insurance business of Acceleration
Life  Insurance  Company  ("ALIC")  and  to  purchase  all  of  the  issued  and
outstanding shares of ALIC from ACCEL.

In conjunction with the  proposed sale, The Guardian  Life Insurance Company  of
America  has agreed  in principle with  Consumers and  ACCEL to  reinsure, on an
indemnity basis,  100% of  the in-force  credit insurance of  ALIC prior  to the
acquisition by Consumers.

Consumers,  pursuant to  the letter  of intent,  has undertaken a  due diligence
effort.  At the formal conclusion of that due diligence, the parties contemplate
negotiation  of   a definitive  stock purchase  agreement.   The closing  of the
transaction  will be  subject to  regulatory approvals  and approval  by ACCEL's
stockholders.

The transaction does not  include the sale of ACCEL's Co$tguard extended service
contract product insured by ANIC.  The letter of intent indicates that Consumers
will continue marketing the Co$tguard product for at least five years.

NOTE I--STOCK OPTION AGREEMENT

On May 23,  1995, an action  was taken by  the Board  of Directors ("Board")  of
ACCEL to  enlarge  the Board  from  its then  current  nine to  eleven  members.
Messrs.  Thomas H. Friedberg and Douglas J. Coats were elected to fill these new
seats.  Mr. Friedberg was then elected Chairman & CEO of ACCEL and Mr. Coats was
elected Executive Vice President.

At  that time,  both Mr.  Friedberg  and Mr.  Coats became  Key Employees  under
ACCEL's 1987  Stock Incentive Plan.   Under the terms of  their arrangement with


ACCEL,  both were  granted stock  options for  ACCEL's common  stock in  lieu of
salary for their first year of service.  Mr. Friedberg was granted an option for
100,000  shares and  Mr.  Coats for  50,000 shares.   The  grant price  for both
options was $2.125, the fair value of ACCEL's common stock on the date of grant.
The options vest immediately and become exercisable  one year following the date
of grant;  however, they would  become exercisable immediately upon  either a) a
change of control of ACCEL, or b) an involuntary termination.  The options would
be forfeited  if employment with ACCEL  was voluntarily terminated  prior to May
23, 1996.  The options lapse five years from the effective date of the grant. 

                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

                   OPERATING RESULTS FOR THE NINE MONTHS ENDED
                    SEPTEMBER 30, 1995 AND SEPTEMBER 30, 1994


OPERATING RESULTS

The income (loss) before federal income  tax for the nine months ended September
30, 1995  was $1,209,000 compared to  ($4,323,000) for the same  period in 1994.
The income (loss) before federal income tax for the three months ended September
30, 1995 was $475,000  compared to ($551,000) for the same period  in 1994.  The
income  for  nine months  and  three  months ended  September  30,  1995 can  be
attributed  to  the  continued   positive  performance  of  ACCEL  International
Corporation ("ACCEL") and subsidiaries  (collectively referred to herein as  the
"Company")  core product lines:  credit insurance and extended service contracts
("Co$tguard").   The results in 1994 reflect a  loss of $3,829,000 in the second
quarter  exclusive of the $205,000 net  loss in the first  quarter, related to a
write  off of  a subsidiary  -- Randjill  Group Ltd.  ("RGL"), parent  to Galaxy
Insurance Company  ("Galaxy").  Galaxy sustained  continued negative development
on its business  in 1994 and as of  June 30, 1994 became  statutorily insolvent.
As a result of  this insolvency, ACCEL wrote off of its investment in RGL in the
second quarter of 1994.   Additional information on this  event can be found  in
Note G  of the Notes  to Unaudited Consolidated  Financial Statements and  under
Certain Events of this section. 

In addition, the  results for the nine months ended  September 30, 1994, include
income  of $750,000 related  to an arbitration  award, and the  recognition of a
realized gain of  $501,000 related to the sale of the  Company's investment in a
real estate partnership venture.  These gains were more than offset by continued
losses in the runoff lines  of business -- principally the realtors'  errors and
omissions line of business.

As to the core product lines, the continued positive performance is attributable
to increased earned premium and improved loss ratios.  The  combined loss ratios
for the nine months ended September 30, 1995 compared  to September 30, 1994 are
41.4%  and 50.9%,  respectively.   The core  product lines  also experienced  an
increase of approximately 7% in premiums earned.

The  increase in income  before federal income  tax of $1,026,000  for the three
months ended September  30, 1995 compared  to the same period  in 1994 is  again
primarily attributable to improved  loss ratios on the  Company's core lines  of
business.   The loss ratios for the third quarter  of 1995 compared to the third
quarter of 1994 are 44.7% and 50.6%, respectively.

In addition,  beginning in 1993, the  Company made a concerted  effort to reduce
general  and  administrative expenses.    Operating  expenses (excluding  taxes,
licenses and fees) decreased by 24% in the first nine months of 1995 compared to
1994 and decreased 24% in the third quarter of 1995 when compared to 1994.  This
was, in part, due to staff reductions, the results of which have continued to be
evidenced in 1995.  These actions, along with the termination and/or reinsurance
of substantially all of the remaining property and casualty and medical lines of
business will allow the Company to concentrate its efforts on further developing
profitable blocks of business.


In summary,  the primary causes for  the change in income  before federal income
tax are  identified by  reviewing Table  I on page  17.   Table I  includes core
product lines  and all runoff product lines with the exception of Galaxy results
in 1994.


REVENUE

Premium  writings for the nine months ended  September 30, 1995 were $43,700,000
compared to $44,800,000 for the same period in 1994.  The decrease in 1995 was a
result  of discontinuing marketing efforts  for all medical  lines, property and
casualty lines and Galaxy.   The premium related to medical lines,  property and
casualty  lines and  Galaxy decreased  by $900,000,  $2,300,000  and $1,900,000,
respectively.     Offsetting  these   decreases  was   a  decrease   in  premium
cancellations of  $4,300,000  related to  the Company's  vendor single  interest
("VSI") business.  The VSI business is  in runoff and has had no material effect
on the statements of operations for the periods presented.

Premium writings  for the three months ended September 30, 1995 were $15,300,000
compared to $11,200,000 for the same period in 1994.  The increase is due to the
decrease in  cancellations of  $5,300,000 related  to the  VSI business  and was
partially  offset by  decreased  premium writings  of  $900,000 related  to  the
discontinued agricultural lines of business.

LIQUIDITY AND CAPITAL RESOURCES

The Company's cash  flows from  operations have  been adequate  for its  current
operating  needs.   The  Company's credit  insurance  policy terms  and  related
liabilities  are  generally  limited to  a  four-year  period  during which  the
consumer  makes payments  on the loan,  and the Company's  liability on extended
service  contracts typically  extends for  either one-year  or five-years.   The
Company,  therefore,   maintains  liquidity  in  its   investment  portfolio  to
correspond with the liability outstanding on its lines of business.  

The  Company's fixed  maturity  securities include  mortgage backed  securities,
collateralized mortgage obligations  and asset backed securities.   At September
30, 1995  the Company  had $19.0  million in  mortgage backed  securities, $16.4
million in collateralized mortgage obligations and $20.9 million in asset backed
securities.   Those  securities are  subject to  risks associated  with variable
prepayments.  This may result in these securities having a different actual cash
flow and average life than planned at the time of purchase.

The  Company limits  the extent  of its  risks on these  types of  securities by
generally  avoiding   securities  whose  cost  significantly   exceeds  par,  by
purchasing  securities   which  are   backed  by   stable  collateral,   and  by
concentrating on securities that  are either planned amortization  or sequential
pay  classes.    The  collateralized  mortgage  obligations  and   asset  backed
securities  owned  have  primarily short  to  intermediate  average  lives.   At
September 30, 1995, the Company did not have a significant amount of higher risk
mortgage or asset backed securities.   There are negligible default risks on the
mortgage and asset  backed security portfolio as a whole as the vast majority of
the  assets are either guaranteed  by U.S. government-sponsored  entities or are
supported in  the securitization  structure by  junior  securities enabling  the
assets to achieve high investment grade status.

In 1993, the Ohio legislature passed legislation which regulates the  ability of
Ohio  domiciled insurance companies to pay dividends.  The regulation limits the
annual dividend  or distribution by an insurer to the  greater of (1) net income
of the previous year  or (2) 10%  of capital and  surplus as of  the end of  the
previous year.   In addition,  all dividends  must come from  earned surplus  to
qualify  as non-extraordinary  dividends.   Amounts greater  than this  would be
considered extraordinary dividends and  could not be paid without  permission of
the  Department of Insurance of the State of Ohio ("the Department").   Based on
this regulation,  the Company  believes Acceleration National  Insurance Company
("ANIC"),  a wholly owned subsidiary of ACCEL, would require Department approval
to  pay any dividend  to the Registrant during  1995, however, Acceleration Life


Insurance  Company ("ALIC"),  a  wholly owned  subsidiary  of ACCEL,  could  pay
approximately $906,000 during 1995 without regulatory approval.


The Registrant's cash flow projections for 1995  assume that certain events take
place  in order  to have  sufficient  cash to  meet its  debt service  and other
requirements.  These events include the sale/liquidation of ACCEL's wholly owned
United Kingdom subsidiary, Acceleration  Insurance Company Limited ("AICL"), and
the  payment of a dividend  from an insurance subsidiary to  ACCEL.  The Company
will monitor its  current and future debt service requirements  to coincide with
cash  flow availability as well as explore various capital raising alternatives.
The 1995 cash flow does  not anticipate the availability of sufficient  funds to
repay $4,000,000 in advances received in 1992 from the Registrant's subsidiaries
which are eliminated in consolidation.

In July 1991, ACCEL  issued $5,848,000 of subordinated notes  (the "Subordinated
Notes") in  connection with the  purchase of  all outstanding  common shares  of
Randjill  Group Ltd.  ("RGL") (see  Note  G of  Notes to  Unaudited Consolidated
Financial  Statements).   The Subordinated Notes  have a nine-year  term with no
principal  payable until  maturity,  and bear  interest  at 10.125%  per  annum.
Effective  June 30,  1992, ACCEL  amended the  notes to  permit the  issuance of
additional notes for the purpose of making interest payments, provided, however,
that ACCEL may at its option pay cash in lieu of issuing additional notes in any
denomination of  less than $1,000.   As a result, ACCEL  issued additional notes
totaling $422,000 and  $515,000 for the first  nine months of 1995 and  the full
year 1994, respectively.

Of the Subordinated Notes  described above, $5,371,000 were initially  issued to
Ranger Insurance Company ("Ranger"), a company related through  common ownership
by a stockholder and director of the Company.   In 1993, Ranger sold all of  the
subordinated  notes held by it to Chase Insurance Holdings Corporation ("CIHC"),
another company related through  common ownership by a stockholder  and director
of  the Company.   Additional Subordinated Notes  in the amount  of $375,000 and
$458,000 were issued as interest payments to related parties for the nine months
1995 and the full year 1994, respectively.  

Pursuant to a transaction authorized and approved by ACCEL's Board of Directors,
and effective December  31, 1993, the Company  sold its investment in  Selective
American Financial  Enterprises,  Inc.  ("SAFE"),  a  company  controlled  by  a
stockholder  and director of the  Company, in exchange  for $2,010,000 principal
amount  of the  Subordinated Notes,  effective as  of December  31, 1993.   Such
amount  of the Subordinated Notes held by  CIHC were cancelled concurrently with
the completion of the  sale of the SAFE shares  as of December 31, 1993.   After
giving effect to the  foregoing transaction, the total outstanding  Subordinated
Notes  were $5,884,000 and $5,462,000 ($5,216,000 and $4,841,000 held by related
parties) at September 30, 1995 and December 31, 1994, respectively.

During  1991,  the  Company  renegotiated  its  credit  agreement  (the  "Credit
Agreement") with a bank and borrowed an additional $5,900,000 bringing the total
outstanding  under  the Credit  Agreement to  $15,000,000.   That  agreement was
subsequently  renegotiated  to  a  commitment  limit  of  $14,000,000  effective
December 31, 1992.   During the  first quarter of 1993,  ACCEL made a  principal
payment of $1,000,000.

During  1993, the  Company did not  meet all  the requirements  contained in the
various financial tests under  the covenants contained in the  Credit Agreement.
On  March 30,  1994, the  bank and  the Company  agreed to  a waiver  of certain
covenants of the Credit Agreement such that the Company would not be  in default
at  December 31,  1993 and  through January  1, 1995.   The loan  agreement also
requires that during  the period the loan  is outstanding, the Company  maintain
consolidated  tangible net worth, as defined in  the agreement.  At December 31,
1993, required tangible net worth was $27,500,000. 
At December 31, 1993, the Company's consolidated tangible net worth, as defined,
was $27,549,000.

During  September  1994, the  revolving loans  under  the Credit  Agreement were


converted to a $13,000,000 term loan, payable in full on September 23, 1998.


On February 7, 1995 the Company renegotiated the terms of  its Credit Agreement.
Under the amended  Credit Agreement, the quarterly  principal payments scheduled
to begin in the fourth quarter of 1994 were waived.  Specific principal payments
totaling up  to $1.5 million  are due on  June 30, 1995  and December  31, 1995,
respectively, from the liquidation of AICL and the sale  of the building used as
the  corporate home office.   During the second quarter of  1995, ACCEL made the
required  principal   payment  of   $200,000,  reducing  the   outstanding  bank
indebtedness to $12,800,000.  The loan is payable in full on June 30, 1997.   On
or prior  to  that date,  the  Company also  is  committed to  complete  certain
actions.   These include pursuing  capital transactions with  other companies or
the sale of significant operating assets that will permit it to pay the  loan in
full by June 30,  1997.  Alternatively, in the case of a merger or other capital
transaction, the agreement can provide for the modification of the  terms of the
Credit Agreement  in a manner  satisfactory to the  bank.  The  Credit Agreement
also requires  that  during the  period  the loan  is  outstanding, the  Company
maintain  consolidated tangible  net worth,  as defined  in  the agreement.   At
September  30, 1995, required tangible net worth  was $13,416,000.  At September
30,  1995,  the  Company's consolidated  tangible  net  worth,  as defined,  was
$21,278,000.   Accordingly, as of September  30, 1995, the loan  was current and
all covenants under the amended Credit Agreement were satisfied.

The Company currently has three business  lines that are in runoff status:   the
realtors' errors and  omission line, the medical product lines  and all property
and casualty  lines except for Co$tguard.  The estimates for policy reserves are
continually under review and  adjusted as necessary, and as  experience develops
or  new  information becomes  known, such  adjustments  are included  in current
operations.

On  August 18,  1995,  ACCEL and  Consumers  Financial Corporation,  Camp  Hill,
Pennsylvania ("Consumers") announced that  they entered into a letter  of intent
for  Consumers to acquire the in-force credit insurance business of Acceleration
Life  Insurance  Company  ("ALIC")  and  to  purchase  all  of  the  issued  and
outstanding shares of ALIC from ACCEL.

In conjunction with  the proposed sale, The  Guardian Life Insurance Company  of
America has  agreed in principle  with Consumers  and ACCEL to  reinsure, on  an
indemnity  basis, 100%  of the in-force  credit insurance  of ALIC  prior to the
acquisition by Consumers.

Consumers, pursuant  to the  letter of  intent, has  undertaken a  due diligence
effort.  At the formal conclusion of that due diligence, the parties contemplate
negotiation  of   a definitive  stock purchase  agreement.   The closing  of the
transaction  will be  subject to  regulatory approvals  and approval  by ACCEL's
stockholders.

The transaction does not include the sale  of ACCEL's Co$tguard extended service
contract product insured by ANIC.  The letter of intent indicates that Consumers
will continue marketing the Co$tguard product for at least five years.

Concurrent with this proposed transaction, the Company is pursuing expanding its
property and casualty product lines and geographic marketing plan of operations.

CERTAIN EVENTS

WRITE OFF OF INVESTMENT IN RGL AND GALAXY:  During December 1986, ACCEL invested
$1,370,000  (a  20%  interest) in  RGL.    RGL was  formed  to  acquire  all the
outstanding shares of Galaxy.  Galaxy was writing commercial property insurance,
property and casualty, and assumed treaty reinsurance.

During  the  second quarter  of 1991,  the  Company purchased  11,000 additional
common shares of RGL at a cost of $992,000.  The additional investment increased
the Company's  ownership to 31%  at June  30, 1991.   In July 1991,  the Company
purchased the remaining 69% of RGL for cash and subordinated notes (see "Note D"


in the Notes to Unaudited Consolidated Financial Statements) of $2.1 million and
$5.8  million, respectively.    The purchase  price  included goodwill  of  $1.2
million.

Members of CIHC held a 45% interest in RGL prior to the acquisition by ACCEL.


For the  three years ended December  31, 1993, RGL recorded  losses and Galaxy's
underwriting  results deteriorated.  The statutory capital and surplus of Galaxy
declined significantly  (from $7.3 million  to $6.1  million to $2.9  million at
December 31,  1991,  1992 and  1993, respectively),  resulting in  the New  York
Department of Insurance ("New York Department") placing a moratorium on  all new
business as of February 28, 1994.

Due to significant  loss development during 1994 on Galaxy's  liability lines of
business,  the Company  contracted with an  independent actuarial  consultant to
review the adequacy of Galaxy's loss  and loss adjustment expense reserves as of
June 30, 1994.   The findings of  this review indicated the  need for additional
reserves which resulted in the statutory insolvency of Galaxy at  June 30, 1994.
Statutory capital and  surplus after  the reserve strengthening  was a  negative
$2.3 million.

Due to  the significance  of the statutory  loss and the  loss of  the Company's
control  of Galaxy  as a result  of the  insolvency, the  Company wrote  off its
investment  in  RGL ($3.8  million)  during the  second  quarter of  1994.   The
unaudited consolidated statement  of operations  for the first  quarter of  1994
includes operating losses of $205,000 related to RGL.

Pursuant to an Order of Liquidation dated October 7, 1994, issued by the Supreme
Court  of the  State  of  New York,  the  Liquidation  Bureau  of the  New  York
Department took control of Galaxy on October 11, 1994.

ANIC,  in the normal  course of business, issued  certain policy endorsements on
Galaxy policies in 1992, some  of which had pending  claims open at the time  of
liquidation.  Based on information currently available, management believes that
these endorsements will not materially impact the Company's financial condition.

DISCONTINUED REALTORS' ERRORS AND OMISSIONS PROGRAM:   As a result of the losses
sustained  in the  realtors' errors  and omissions  program, and  in particular,
conduct discovered by  the Company  after it assumed  responsibility for  claims
processing  and handling,  the Company filed  suit in November  1991 against the
non-affiliated marketing organization and broker involved in the program.

The  lawsuit  seeks  to recover  funds  improperly  withdrawn  from the  account
established for  the payment of  claims under  the program; for  damages due  to
business  expenses  improperly  charged against  such  funds;  and for  improper
administration of  the program.   ACCEL  and ANIC  entered  into an  arrangement
whereby  ANIC's rights  under the  lawsuit were  transferred to  the Company  in
exchange for a $4,000,000 collateral loan issued to ANIC which was recorded as a
capital contribution.  The  transaction and related agreements were  approved by
the Department.  The  loan agreement and  accompanying promissory note call  for
interest at the 13 week Treasury Bill rate plus 100 basis points, and  principal
of $4,000,000 to be paid on December 31, 1995.  The security for such collateral
loan consists of 190 shares (47.5%) of ALIC common stock.

ACCEL is  pursuing the litigation  vigorously and believes  that it has  a sound
basis for its claims, trial is currently  scheduled for November 1995.  If ACCEL
is unable to satisfy the principal payment due by year-end 1995 it will transfer
the appropriate  value of collateral pledged  under the loan agreement  to ANIC.
Interest on the note is paid and current.


                                     TABLE I

Several key operating ratios of the Company are as follows:


                                             Unaudited Consolidated Results
                                             ------------------------------
                                           (Thousands of dollars except ratios)
                                             Nine months ended September 30,
                                           ---------------------------------

                                                      1995       1994 (1)
                                                    --------     ---------
Gross premiums written                              $43,669     $ 42,839

Net premiums earned                                 $29,941     $ 33,699

RATIOS:
   1. Policy benefits to net premiums earned          43.2%        51.7%

   2. Commissions and selling expenses and
        general and administrative expenses
        to gross premiums written                     50.5%        48.1%

   3. Commissions and selling expenses,
        reinsurance expense recovery and
        change in deferred policy acquisition
        costs to net earned premium (2)               49.2%        43.4%

   4. Taxes, licenses and fees to gross
        written premium                                3.2%         3.2%



   (1)  For comparative purposes, the 1994 data excludes the results of Galaxy.

   (2)  The  1995 results  reflect a  higher  concentration of  credit business,
        which typically has a higher acquisition cost.


PART II. OTHER INFORMATION


ITEM 6.  Exhibits and Reports on Form 8-K

    (b)  No reports  on Form 8-K  have been filed  by the Registrant  during the
         quarter ended September 30, 1995.


                                    SIGNATURE


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.

                                           ACCEL INTERNATIONAL CORPORATION

Dated:         November 13, 1995           By:  /S/ Kurt L. Mueller         
        ------------------------------          ----------------------------
                                                Kurt L. Mueller
                                                Vice President and Controller*
_____
*  Mr. Mueller is Vice President and Controller and has been duly authorized  to
   execute the report on behalf of the Registrant.