SECURITIES AND EXCHANGE COMMISSION

                           Washington, D.C. 20549

                                  FORM 8-K

                               CURRENT REPORT


                     Pursuant to Section 13 or 15(d) of
                     the Securities Exchange Act of 1934



                       Date of report:  April 30, 1997
                      (Date of earliest event reported)



                        NORTH EAST INSURANCE COMPANY
           (Exact name of registrant as specified in its charter)


              Maine                       0-11184               01-0278387
 (State or other jurisdiction of        (Commission         (I.R.S. Employer
 incorporation or organization)          File No.)         Identification No.)


   482 Payne Road, Scarborough, Maine                       04074
(Address of principal executive offices)                 (Zip code)


Registrant's telephone number:   (207) 883-2232


Item 5.  Other Events. 
 
North East Insurance Company ("NEIC") on April 30, 1997 announced that 
A.M. Best Company has upgraded NEIC to a "B-" rating.  A.M. Best publishes 
ratings of financial condition of more than 2,400 property and casualty 
insurers and more than 1,500 life and health insurers.  A "B-" rating is 
described as follows: 
 
"B AND B- (ADEQUATE) - Assigned to companies which, in our opinion, have 
demonstrated adequate overall performance when compared to the standards 
established by A.M. Best Company. B and B- companies have an adequate 
ability to meet their obligations to policyholders, but their financial 
strength is vulnerable to unfavorable changes in underwriting or economic 
conditions." 
 
Prior to the upgrade, NEIC carried a "D" rating from A.M. Best.  NEIC had 
previously announced its intention to seek an improved rating on the basis 
of a significant improvement in its financial condition and resolution of 
uncertainties surrounding sale of a large block of NEIC common stock 
formerly held in a non-voting trust. 
 

                                  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, hereunto duly authorized. 
 


                                    NORTH EAST INSURANCE COMPANY
 
 
Date:  May 5, 1997                  By:  /s/ Graham S. Payne 
                                         Treasurer and Chief Financial Officer