<PAGE>



                         UNITED STATES
               SECURITIES AND EXCHANGE COMMISSION
                    WASHINGTON, D.C.  20549

                           FORM 10-Q

     (X)  Quarterly report under section 13 or 15(d) of the
     Securities Exchange Act of 1934.   For the quarter ended
     June 30, 1998.

                               or

     (  ) 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:  1-11920


                      MMI Companies, Inc.
     (Exact name of registrant as specified in its charter)

           Delaware                      36-3263253
(State or other jurisdiction of         (IRS Employer
incorporation or organization)         Identification No.)

      540 Lake Cook Road, Deerfield, Illinois  60015-5290
            (Address of principal executive offices)

                         (847) 940-7550
      (Registrant's telephone number, including area code)

                    Not applicable
     (Former name, former address and former fiscal year,
                 if changed since last report)

Indicate by a 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

There were 18,964,418 shares outstanding of the registrant's
common stock, $0.10 par value, as of August 11,1998.








<PAGE>

              MMI Companies, Inc. and Subsidiaries

                             Index
<TABLE>
<CAPTION>
                                                          
                                                      Page No.
<S>                                               <C>
Part I.  Financial Information                          

          Item 1. Financial Statements                  

               Consolidated Balance Sheets             3

               Consolidated Statements of              4
                Income

               Consolidated Statements of              5
                Stockholders' Equity

               Consolidated Statements of              6
                Cash Flows

               Notes to Consolidated                 7-9
                Financial Statements

          Item 2.  Management's Discussion         10-11
                   and Analysis of
                   Financial Condition and
                   Results of Operations


Part II.  Other Information                             

          Item 6.  Exhibits and Reports on            12
                    Form 8-K

          Signatures                                  13

EXHIBITS:                                               

      10.11  First Amendment to  Employment             
              Agreement
      27.    Financial Data Schedule.                     


</TABLE>
<PAGE>
                 MMI Companies, Inc. and Subsidiaries
                      Consolidated Balance Sheets
                 (In thousands, except per share data)
<TABLE>
<CAPTION>
                                   June 30, 1998     December 31, 1997      
                                    (Unaudited)
<S>                                        <C>         <C>
                                                          
ASSETS                                                    
   INVESTMENTS                                            
       Short-term investments       $   56,638        $  52,219
       Fixed maturities              1,132,016        1,135,702
       Preferred stocks                 59,098           42,879
                                     1,247,752        1,230,800
   OTHER ASSETS                                           
       Cash                             15,098            6,698
       Premium and fees receivable     209,985          165,906
       Reinsurance receivables         310,144          300,077
       Prepaid reinsurance premiums     36,147           21,514
       Accrued investment income        18,467           17,045
       Cost in excess of net                              
       assets of purchased subsidiaries,
       less accumulated amortization    38,887           37,257
       Furniture and equipment -                          
       at cost,less accumulated       
       depreciation                     14,616           14,258
       Deferred income taxes            44,317           42,979
       Other                            59,408           47,533
                                    $1,994,821       $1,884,067
LIABILITIES AND STOCKHOLDERS'                             
EQUITY LIABILITIES                                            
       Policy liabilities:                                
       Loss and loss adjustment                        
       expense reserves:
       Medical malpractice           
       liability                    $  636,961       $  613,063
       International                   485,909          500,032
       Other                            21,070           12,051
                                     1,143,940        1,125,146

       Unearned premium reserves       195,646          134,188
       Future life policy benefits       8,142            8,723
                                     1,347,728        1,268,057

       Accrued expenses and other                         
       liabilities                      51,484           50,071
       Amounts due to reinsurers        59,913           48,213
       Company-obligated,                                 
       mandatorily redeemable 
       preferred capital securities 
       of subsidiary trust holding 
       solely junior subordinated
       debentures of the Company       118,825          118,724
                                     1,577,950        1,485,065
   STOCKHOLDERS' EQUITY                                   
      Common Stock, par value $.10                        
      per share:
      Authorized shares: - 30,000
      Issued and outstanding                          
      shares: 1998 - 18,964;                                    
      1997 - 18,857                     1,896            1,886
      Additional paid-in capital      220,167          217,855
      Retained earnings               169,067          154,929
      Accumulated other                                   
      comprehensive income, 
      net of taxes:
      1998 - $13,563; 1997 - $12,812   25,741           24,332
                                      416,871          399,002
                                   $1,994,821       $1,884,067
                                               
        </TABLE>See notes to consolidated financial statements.


<PAGE>
                   MMI Companies, Inc. and Subsidiaries
                     Consolidated Statements of Income
                   (In thousands, except per share data)
                                 Unaudited
<TABLE>
<CAPTION>

                                Three Months         Six  Months
                                Ended June 30,      Ended June 30,
                                1998      1997      1998      1997
  <S>                           <C>       <C>       <C>       <C>   
  REVENUES                                                         
                                                                   
  Insurance premiums earned:                                        
  Medical malpractice                         
  liability                    $40,975    $34,910   $110,236  $75,885 
  International                 30,753     35,301     60,715   64,448
  Life and health                3,543      1,125      6,686    2,426
                                75,091     71,336    177,637  142,759
  Consulting and fee         
  income                        13,061     13,241     25,373   25,308       
  Net investment       
  income                        18,966     18,886     37,738   36,980       
  Net realized gains on                                             
  investments                      204        369      1,033      970
  TOTAL REVENUES               107,322    103,832    241,781  206,017
                                                                    
  LOSSES AND EXPENSES                                               
                                                                    
  Losses and loss adjustment                                        
  expenses:
  Medical malpractice       
  liability                     35,959     28,517     98,011  62,094     
  International                 19,704     22,182     38,265  39,409
  Life and health                2,548      1,058      5,036   2,264
                                58,211     51,757    141,312 103,767
  Insurance and administrative                      
  expenses                      36,972     36,673     75,545  72,013
  Interest expense               2,462      1,466      4,897   2,916
  TOTAL LOSSES AND                                           
  EXPENSES                      97,645     89,896    221,754 178,696           6
                                                                    
  INCOME BEFORE INCOME                                       
  TAXES AND                                              
  EXTRAORDINARY LOSS             9,677     13,936     20,027  27,321
  LOSS                  
  Income taxes                   1,193      2,854      2,848   5,614
  INCOME  BEFORE              
  EXTRAORDINARY LOSS             8,484     11,082     17,179  21,707
  Extraordinary loss, 
  net of tax                         -        267          -     267
  NET INCOME                   $ 8,484     10,815     17,179  21,440     
                                                                       
  Earnings per common and common                                       
  equivalent share:
                                                                       
  Basic:                                                               
  Income before extraordinary        
  loss                         $ 0.45      $ 0.59     $ 0.91   $1.16
  Extraordinary loss, net of                                   
  tax                               -       (0.01)         -   (0.01)          )
  NET INCOME                   $ 0.45      $ 0.58     $ 0.91   $1.15
     
  Diluted:                                                          
  Income before extraordinary      
  loss                           0.44        0.57       0.88    1.12
  Extraordinary loss, 
  net of tax                        -       (0.01)         -   (0.01)
  NET INCOME                   $ 0.44      $ 0.56     $ 0.88  $ 1.11
                                     
</TABLE>
              See notes to consolidated financial statements.

<PAGE>
              MMI Companies, Inc. and Subsidiaries
         Consolidated Statements of Stockholders' Equity
              (In thousands, except per share data)
<TABLE>
<CAPTION>
                                                               
                                                               
                                                               
                                                               
                                                  Accumulated 
                                                    Other
                  Common Stock   Additional      Comprehensive   Total
                  Number   Par   Paid-In   Retained  Income,     Stockholders'
                 of Shares Value Capital   Earnings  Net of Taxes Equity
<S>               <C>     <C>    <C>       <C>       <C>         <C>
Balance at 
December 31,1996  18,681  $1,868 $215,091  $124,751  $13,456     $355,166      $
                                                               
Year ended 
December 31, 1997:
Net income                                   34,360                34,360
Issuance of Common                                                  
Stock in connection                                           
with acquisition             
of subsidiar          85       9    1,942                           1,951
Issuance of Common                                                  
Stock in connection                                                    
with employee                                               
benefit plans and   
exercise of employee
stock options        212       21   3,650                           3,671
Common Stock   
repurchased         (121)     (12) (2,828)                         (2,840)
Change in                                                           
accumulated other                                                      
comprehensive    
income, net of
taxes of $5,595                                          10,876    10,876
Common cas                                     
dividends 
($.22 per share)                               (4,182)             (4,182)
Balance at 
December 31, 1997 18,857   1,886  217,855      154,929   24,332   399,002
                                                                       
Six  months ended 
June 30, 1998 (unaudited):
Net income                                      17,179             17,179
Issuance of Common                                                  
Stock in connection                                          
with acquisition              
of subsidiary        66        6    1,393                          1,399
Issuance of Common                                                  
Stock in connection                                                    
with employee      
benefit plans 
and exercise of
employee stock
options              41        4      919                            923
Change in                                                           
accumulated other                                                      
comprehensive 
income, net of
taxes of $751                                           1,409      1,409
Common cash                                               
dividends 
($.16 per share)                                (3,041)           (3,041)
Balance at 
June 30, 1998    
(unaudited)       18,964  $1,896  $220,167 $169,067    $25,741  $416,871
                                      
</TABLE>
         See notes to consolidated financial statements.


<PAGE>
              MMI Companies, Inc. and Subsidiaries
              Consolidated Statements of Cash Flows
                         (In thousands)
                            Unaudited
                                
<TABLE>
<CAPTION>
                                                 Six Months
                                               Ended June 30,
                                               1998      1997
<S>                                            <C>       <C>
OPERATING ACTIVITIES                                      
Net income                                     $17,179   $21,440
Adjustments to reconcile net 
income to net cash provided 
(used) by operating activities:
Increase in policy liabilities                  79,671    61,852
Change in reinsurance balances                 (13,000)  (21,313)
Increase in premium and fees                           
receivable                                      (44,036) (54,648)
Increase in deferred income                            
taxes                                            (2,128)  (1,286)
Increase in accrued investment                         
income and other assets                         (15,580) (11,569)
Change in accrued expenses and other                   
liabilities                                       1,468  (15,713)
Net realized gains on investments                (1,033)    (970)
Depreciation and amortization on                       
investments and goodwill                          4,249    2,710
Net cash provided (used) by                         
operating activities                             26,790  (19,497)

                                                                  
INVESTING ACTIVITIES                                              
Net sale of short-term                                 
investments                                     (4,624)   10,747
Purchases of available-for-sale                        
investments                                   (345,962) (340,094)
Sales of available-for-sale                            
investments                                    301,731   336,012
Maturities of available-for-sale                       
investments                                     35,831    26,782
Acquisitions of subsidiaries                         -    (8,281)
Furniture and equipment                                
additions                                        (3,248)  (3,791)
Net cash (used) provided by                         
investing activities                            (16,272)  21,375
                                                               
FINANCING ACTIVITIES                                              
Issuance of Common Stock                            923    1,118
Repurchase of Common Stock                            -   (2,840)
Dividends                                        (3,041)  (1,648)
Net cash used by financing                          
activities                                       (2,118)  (3,370)
                                                                  
Increase (decrease) in cash                        8,400  (1,492)
Cash at beginning of period                        6,698   4,839
Cash at end of period                           $ 15,098 $ 3,347
                                                         
                                                          
</TABLE>
         See notes to consolidated financial statements.



<PAGE>
              MMI Companies, Inc. and Subsidiaries
            Notes to Consolidated Financial Statements
                           June 30, 1998

1.   Basis of Presentation

     The    accompanying   unaudited   consolidated   financial
  statements  have been prepared in accordance  with  generally
  accepted   accounting   principles  for   interim   financial
  information.   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  the
  six  month  period  ended June 30, 1998 are  not  necessarily
  indicative of the results that may be expected for  the  year
  ending  December 31, 1998. For further information, refer  to
  the  consolidated  financial  statements  and  notes  thereto
  included in the Company's 1997 Annual Report.

2.   Acquisition of Unionamerica Holdings plc

     In  December 1997, MMI acquired Unionamerica Holdings  plc
  (Unionamerica)   in  exchange for  7,100,000  shares  of  MMI
  Common  Stock.   The  acquisition  was  accounted  for  as  a
  pooling  of  interests  and,  accordingly,  the  accompanying
  consolidated  financial statements were restated  to  include
  the  consolidated operations of Unionamerica for all  periods
  presented.

3.   Earnings Per Share
  
  The  following  table  sets  forth  the  computation  of  net
  earnings  per  common share and net earnings per  common  and
  common  equivalent  share  (in thousands,  except  per  share
  data):
  <TABLE>
  <CAPTION>
                                 Three Months            Six  Months    
                                Ended June 30,           Ended June 30,
                                1998     1997            1998     1997
<S>                             <C>      <C>             <C>      <C>      
                                                                
Net earnings                    $8,484   $10,815         $17,179  $21,440
                                                                      
Weighted average number of                                            
common shares outstanding       18,927    18,702          18,893   18,721
                                                                     
Dilutive effect of stock                                              
options using the
treasury stock method              504       597             538     674
                                                                  
Weighted average number of                                        
common and common equivalent            
shares outstanding....          19,431    19,299           19,431 19,395
                                                                 
Net earnings per common     
share                           $  .45    $  .58           $  .88 $ 1.15
                                                                  
Net earnings per common and                                           
common equivalent share         $  .44    $  .56           $  .88 $ 1.11


</TABLE>


<PAGE>
4.  Trust Preferred Capital Securities

     In December 1997, the Company issued $125,000,000 30-year,
  mandatorily redeemable preferred capital securities  (Capital
  Securities)  of MMI Capital Trust 1 (Trust), a subsidiary  of
  MMI.   Proceeds from the sale of the Capital Securities  were
  used  to purchase $125,000,000 aggregate principal amount  of
  the  Company's 7-5/8 Junior Subordinated Deferrable  Interest
  Debentures   (Debentures),  due  December  15,   2027.    The
  Debentures  are  the sole assets of the Trust.   The  Capital
  Securities  will  pay  a dividend of 7-5/8%  semiannually  in
  arrears  beginning June 15, 1998 and have a maturity date  of
  December  15,  2027.  Payments on the Capital Securities  are
  fully  and unconditionally guaranteed by MMI.  Total proceeds
  were  $118,700,000, net of expenses.  The effective  rate  of
  the Capital Securities is 8.06%.
  
5.   Effect of New Pronouncements

     As  of  January 1, 1998, the Company adopted Statement  of
  Financial   Accounting  Standards   No.   130   (SFAS   130),
  "Reporting  Comprehensive Income".  SFAS 130 established  new
  rules  for the reporting and display of comprehensive  income
  and  its components.  The adoption of SFAS 130 had no  effect
  on the Company's net income or stockholders' equity.
     
     The  components  of comprehensive income  and  accumulated
  comprehensive income are as follows (in thousands):
     <TABLE>
     <CAPTION>
                      Three Months Ended   Six Months Ended
                           June 30,            June 30,
                      1998        1997     1998        1997
                                                    
<S>                   <C>         <C>      <C>         <C>
Net income            $ 8,484     $10,815  $17,179     $21,440
Net change in                                       
unrealized gains on            
investments, net                 
of income taxes         1,874       7,430    1,409      (1,304)
Comprehensive income  $10,358     $18,245  $18,588     $20,136
                                                    
                                 June 30,   December 31,
                                   1998        1997
                                          
Accumulated other                                   
comprehensive  
income at
beginning of year                $24,332     $13,456
Net change in                                       
unrealized gains on
investments, net  
of income taxes                    1,409     10,876
Accumulated other                                   
comprehensive   
income at end of
period                           $25,741     $24,332
</TABLE>
   In 1997 the FASB also issued Statement of Financial Accounting
Standards No. 131 (SFAS 131),`'Disclosures  about  Segments  of  
an  Enterprise  and   Related Information,"  which  is  effective
for  years  beginning  after December  15, 1997.  SFAS 131 established 
standards for  the  way that   public  business  enterprises  report  
information   about operating  segments in annual financial statements  
and  requires those  enterprises  report selected information  about  
operating segments in interim financial reports issued to shareholders.

     MMI   Companies  has  three  reportable  segments:  domestic
insurance, international insurance and consulting and fees.   The
domestic insurance segment principally includes professional  and
general   liability  insurance  and  reinsurance  for  hospitals,
healthcare  systems and healthcare providers.  The  international
insurance  segment,  principally located in the  United  Kingdom,
includes  the  international insurance and reinsurance  business.
The  consulting and fee segment includes clinical risk management
consulting,  strategic healthcare consulting, employee  relations
consulting,   professional   liability   claims   administration,
healthcare   credentials  verification  services   and   billing,
compliance and reimbursement services.

<PAGE>
   Intersegment  revenues  and  expenses  have  been  eliminated.
   Information  by  segment  is  as  follows  (in  thousands   of
   dollars):
<TABLE>
<CAPTION>
                       Three Months Ended    Six Months Ended
                            June 30,             June 30,
                                                      
                         1998      1997       1998     1997
                                                      
<S>                      <C>       <C>        <C>       <C>
Domestic insurance                                      
segment:
Revenues                $57,060    $48,785    $141,857  $103,229
Income before                             
taxes                     5,501      5,898      10,797    12,484
                                                      
Loss ratio                86.5%      82.1%       88.1%     82.2%
Expense ratio             29.3%      36.9%       24.0%     33.7%
Combined ratio           115.8%     119.0%      112.1%    115.9%
                                                      
                                                      
International                                         
insurance segment:
Revenue                $37,201    $41,806      $74,551   $77,480
Income before                                   
taxes                    4,331      6,462       10,736    12,475
                                                      
Loss ratio               64.4%      62.8%        63.0%     61.1%
Expense ratio            43.1%      37.3%        42.1%     39.7%
Combined ratio          107.5%     100.1%        105.1%   100.8%
                                                      
                                                      
Consulting and fee                                    
segment:
Revenues            $  13,061    $ 13,241    $  25,373  $ 25,308
Income (loss)                                      
before taxes             (155)      1,576       (1,506)    2,362
                                                      
Pretax margin           (1.2%)      11.9%        (5.9%)     9.3%
                                                      
                                                      
Consolidated insurance                                
ratios:
Loss ratio              77.5%       72.6%         79.6%    72.7%
Expense ratio           34.9%       37.1%         30.2%    36.4%
Combined               112.4%      109.7%        109.8%   109.1%
</TABLE>

   In  June  1998,  the  FASB  issued  Statement  of  Financial
Accounting  Standards  No.  133 (SFAS  133).   "Accounting  for
Derivative  Instruments  and  Hedging  Activities,"  which   is
effective for fiscal years beginning after June 15, 1999.   The
Company does not anticipate that the adoption of SFAS 133  will
have   a  significant  effect  on  the  Company's  consolidated
operating results or financial position.

<PAGE>
Item  2.   Management's  Discussion and Analysis  of  Financial
Condition and Results of Operations

Results of Operations

   Six  Months Ended June 30, 1998 compared to Six Months Ended
June 30, 1997.

   Revenues.  Gross  premiums written  increased  by  13.9%  to
$278,998,000  for  the  six months ended  June  30,  1998  from
$244,919,000  for  the  1997  period.   Net  premiums   written
increased by 14.2% to $224,430,000 from $196,479,000,  and  net
premiums  earned  increased  by  24.4%  to  $177,637,000   from
$142,759,000.  For the three months ended June 30,  1998  gross
premiums   written  increased  by  8.9%  to  $68,551,000   from
$62,929,000,  net  premiums  written  increased  by   3.8%   to
$52,565,000 from $50,638,000 and net premiums earned  increased
by 5.3% to $75,091,000 from $71,336,000.

   Medical  malpractice premiums earned increased by  45.3%  to
$110,236,000  for  the six months ended  June  30,  1998   from
$75,885,000  for  the  1997 period and increased  by  17.4%  to
$40,975,000  from  $34,910,000  for  the  three  month  period.
International  premiums earned decreased  5.8%  to  $60,715,000
from $64,448,000 for the 1997 period  and decreased by 13.4% to
$30,573,000 from $35,301,000 for the three month period.   Life
and  health  premiums earned increased by 175.6%, to $6,686,000
for  the six months ended June 30, 1998 from $2,426,000 for the
1997   period  and  increased  by  214.9%  to  $3,543,000  from
$1,125,000  for the three month period.  The Company's  written
and  earned  premiums can vary significantly  from  quarter  to
quarter  due  to  one-time premiums, such  as  for  prior  acts
coverage  for  new insureds.  During the first six  months   of
1998,   the  Company's  medical  malpractice  premiums   earned
included $31,981,000 in such one time premiums, an increase  of
$27,252,000  in  one-time premiums from the first  six  months,
1997.

   Consulting  and  fee  income  was  relatively  unchanged  at
$25,373,000  for  the  six  months ended  June  30,  1998  from
$25,308,000  for  the  1997 period and  decreased  by  1.4%  to
$13,061,000 from $13,241,000 for the three month period.

  Net  investment  income increased by 2.0% to $37,738,000  for
the  six  months ended June 30, 1998 from $36,980,000  for  the
1997  period  and  was  relatively  unchanged  at   $18,966,000
compared to $18,886,000 for the three month period.    For  the
three  month  period,  the Company had net  realized  gains  on
investments of $204,000 in 1998 compared to $369,000 in 1997.

  Losses  and  expenses.  Losses and loss  adjustment  expenses
("LAE")  increased by 36.2% to $141,312,000 for the six  months
ended  June 30, 1998 from $103,767,000 for the 1997 period  and
increased  by  12.5%  to $58,211,000 from $51,757,000  for  the
three  month period.  Medical malpractice liability losses  and
LAE  increased by 57.8% to $98,011,000 for the six months ended
June 30, 1998 from $62,094,000 for the 1997 period, due to  the
increase  in  one-time premiums in the first quarter  1998  and
increased  by  26.1%  to $35,959,000 from $28,517,000  for  the
three  month  period.  International losses and  LAE  decreased
2.9%  to  $38,265,000 from $39,409,000 in the 1997  period  and
decreased  by  11.2%  to $19,704,000 from $22,182,000  for  the
three  month  period.   Other  losses  and  LAE  increased   to
$5,036,000  from  $2,264,000 in the second quarter  1997.   The
consolidated loss ratio increased to 79.6% from 72.7%  for  the
respective  six month periods due to an increase  in  the  core
medical  malpractice loss ratio as well as a higher loss  ratio
associated with the one-time premiums.

  Insurance  and administrative expenses increased by  4.9%  to
$75,545,000  for  the  six  months ended  June  30,  1998  from
$72,013,000  for  the  1997 period and  increased  by  0.8%  to
$36,972,000 from $36,673,000 for the three month period.
  
  Interest expense increased by 67.9% to $4,897,000 for the six
months ended June 30, 1998 from $2,916,000  for the 1997 period
and  increased by 67.9% to $2,462,000 from $1,466,000  for  the
three  month period, due to an increase in debt outstanding  as
well  as  an  increase in the interest rate on the debt.   Debt
outstanding  totaled $118,825,000 at June 30, 1998 compared  to
$93,000,000 at June 30, 1997.

  Income  taxes.   Income  taxes were $2,848,000  for  the  six
months ended June 30, 1998 compared to $5,614,000  for the 1997
period  and for the three month period were $1,193,000 in  1998
compared  to  $2,854,000  in  the  prior  year.   Income  taxes
decreased  for  the three and six months due to  lower  pre-tax
income in 1998.


<PAGE>
   Net  income.  Net income decreased by  19.9% to  $17,179,000
for the six months ended June 30, 1998 from $21,440,000 for the
1997  period and decreased 21.6% to $8,484,000 from $10,815,000
for the three month period.

   Net  income  per share.  Diluted net income per  common  and
common  equivalent share decreased to $.88 for the  six  months
ended  June 30, 1998 from $1.11 for the 1997 period.   For  the
three  months ended June 30, diluted net income per  share  was
$.44 per share in 1998 and $.56 per share in 1997.


Liquidity And Capital Resources

  As  a holding company, the Company's assets consist primarily
of  the  stock of its subsidiaries.  The principal  sources  of
funds are management fees and dividends from subsidiaries.   In
the  six  month periods ended June 30, 1998 and June 30,  1997,
the  Company  received dividends of $3,000,000 and  $5,500,000,
respectively,  from  its subsidiaries.   The  Company  received
management  fees from its subsidiaries of $11,975,000  for  the
six months ended June 30 1998, compared to $13,025,000 in 1997.

  On  a consolidated basis, the Company's principal sources  of
operating funds are premiums, net investment income,  fees  and
recoveries  from  reinsurers.  Funds are used  to  pay  claims,
operating  expenses, reinsurance premiums, acquisition  related
expenses,  debt  service requirements, taxes and  dividends  to
stockholders.

  Cash  provided  by operating activities was  $26,790,000  for
the  six months ended June 30, 1998 compared with cash used  of
$19,497,000 for the six months ended June 30, 1997. Because  of
variability  related to the timing of payment of  claims,  cash
from  operations  for  a casualty insurance  company  can  vary
substantially from quarter to quarter.

  Cash  used  by investing activities was $16,272,000  for  the
six  months  ended June 30, 1998 compared to cash  provided  of
$21,375,000 for the six months ended June 30, 1997.

    Cash  used by financing activities was $2,118,000  for  the
six  months ended June 30, 1998 compared to $3,370,000 for  the
six months ended June 30, 1997.

    The  Company  invests  in  investment  grade  fixed  income
securities and preferred stocks.  The estimated fair  value  of
preferred  stocks  was  4.7% of fair value  of  total  invested
assets  as  of  June 30 1998. The estimated fair value  of  the
Company's  investment portfolio was $1,247,752,000 as  of  June
30,  1998  compared to $1,230,800,000 as of December 31,  1997.
The  June  30,  1998  amount includes net unrealized  gains  of
$39,304,000  which represent the amount by which the  estimated
fair  value of the investment portfolio exceeds amortized cost.
Net  unrealized gains as of December 31, 1997 were $37,144,000.
The Company maintains a portion of its investment portfolio  in
high  quality,  short-term securities to  meet  its  short-term
operating  liquidity  requirements, including  the  payment  of
claims    and   expenses.    Short-term   investments   totaled
$56,638,000 or 4.5% of invested assets at June 30,  1998.   The
Company  believes that all of its invested assets  are  readily
marketable.

   Long-term  debt  consisting  of Capital  Securities  totaled
$118,825,000  at  June 30, 1998.  This amount  relates  to  the
Company's  issuance  of  $125,000,000 of 30-year,  non-callable
Capital Securities in December, 1997.

  Stockholders'  equity was $416,871,000 as of  June  30,  1998
compared to $399,002,000 as of December 31, 1997. Dividends  to
stockholders were $3,041,000 for the six months ended June  30,
1998.

Year 2000

   The  Company has developed a workplan to address  year  2000
issues  across  all MMI technology platforms.   A  company-wide
assessment  of  year  2000 exposures  has  been  completed  and
workplan priorities and schedules are in place and are expected
to  be completed by the end of 1998.  Additionally, system-wide
year  2000  simulations  are scheduled  throughout  1999.   The
workplan includes system modification and conversion as well as
alignment with vendors and third parties.  The cost to  address
year  2000 issues is not expected to be material and  is  being
expensed as incurred.
<PAGE>

                   PART II.  OTHER INFORMATION




Item 6.  Exhibits and Reports on Form 8-K

  A.Exhibits

        10.11  First Amendment to Employment Agreement
         27.   Financial Data Schedule.
     

  B.     Reports  on  Form 8-K.  No reports on  Form  8-K  were
         filed during the quarter.



<PAGE>

                            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.


                                        MMI   Companies,   Inc.
(Registrant)



Date: August 13, 1998
                                        /s/B. Frederick Becker
                                        B. Frederick Becker
                                        Chairman and Chief
                                        Executive Officer

Date: August 13, 1998
                                        /s/Paul M. Orzech
                                        Paul M. Orzech
                                        Executive Vice President and
                                        Chief Financial Officer