U.S. SECURITIES AND EXCHANGE COMMISSION
                           WASHINGTON, D.C.  20549


                                 FORM 12b-25


                         NOTIFICATION OF LATE FILING



(Check One):

[ ] Form 10-K and Form 10-KSB     [ ] Form 20-F     [ ] Form 11-K
[X] Form 10-Q and Form 10-QSB     [ ] Form N-SAR

      For Period Ended:  September 30, 1997

      [ ]  Transition Report on Form 10-K
      [ ]  Transition Report on Form 20-F
      [ ]  Transition Report on Form 11-K
      [ ]  Transition Report on Form 10-Q
      [ ]  Transition Report on Form N-SAR
      For the Transition Period Ended: . . . . . . . . . . . . . .



      Nothing in this form shall be construed to imply that the 
Commission has verified any information contained herein.


      If the notification relates to a portion of the filing checked 
above, identify the Item(s) to which the notification relates:

                   Items 1 and 2 of Part I of Form 10-QSB;
               Exhibit 27 to Item 6 of Part II of Form 10-QSB



PART I - REGISTRANT INFORMATION

Full Name of Registrant:  North East Insurance Company
Former Name if Applicable:

Address of Principal Executive Office:     482 Payne Road,
                                           Scarborough, Maine 04074


PART II - RULES 12b-25(b) AND (c)

The identified portion of the subject report cannot be filed without 
unreasonable effort or expense, and relief is sought pursuant to Rule 
12b-25(b).  The reasons for the delay are described in reasonable detail 
in Part III of this form.  The identified portion of the subject report 
will be filed on or before November 21, 1997.


PART III - NARRATIVE

SUMMARY.  For the reasons stated below, North East Insurance Company 
("NEIC" or the "Registrant") is presently unable to compute its net 
income for the quarter ended September 30, 1997.  As a result, the 
Registrant is unable to complete Items 1 and 2 of Part I of its Form 10-
QSB report for the fiscal quarter ended September 30, 1997.  The 
Registrant has initiated various actions to resolve this uncertainty, 
and undertakes to file these Items by November 21, 1997.

DISCUSSION.  As previously disclosed in the Form 10-QSB report for its 
fiscal quarter ended March 31, 1997, NEIC renegotiated its reinsurance 
arrangements during the first quarter of 1997.  The renegotiations 
involved (i) a change in the level of its "excess of loss" reinsurance 
coverage and (ii) a termination of its quota share reinsurance on a run-
off basis, both effective as of January 1, 1997. These arrangements are 
reflected in two reinsurance contracts between NEIC and MIC Re, its 
reinsurer.

The parties to this arrangement agreed on a payment formula under which 
expenses associated with the run-off of the quota are determined as the 
sum of the covered losses and unearned commissions for the quarter, 
subject to a designated limit.  The intended result of such formula was 
to charge off the quota share reinsurance in such a way as to amortize 
the expense in a predictable manner.

Approximately six weeks ago, it was determined that the payment formula 
might, by its terms, result in a charge far exceeding projections.  
Subsequent investigations by NEIC and its reinsurance consulting firm 
determined that this result was not caused by a computational error.  
Both NEIC and MIC Re are now in agreement that this outcome is 
inconsistent with the intent of the revised arrangements, and reveals a 
flaw in the design of the original payment formula.  Representatives of 
the two companies will be meeting on November 19, 1997 to work out the 
appropriate application of the payment formula.  

Exhibit 1 to this report contains a copy of the reinsurer's letter, 
confirming this meeting on November 19, 1997.

If the payment formula were applied without regard to the underlying 
intention of the parties, the Registrant's ceded premiums and 
reinsurance recoveries for the third quarter would be approximately 
$920,000 and $468,000, respectively, resulting in a net loss of 
approximately ($390,000) for the quarter.  While the exact amount of 
adjustment in the payment formula remains to be agreed upon, the parties 
have agreed that the adjustment may be as high as several hundred 
thousand dollars, thereby fundamentally affecting the quarterly 
presentation of earnings of NEIC.

Due to the complexity of these issues and the late date of their 
discovery, the Registrant has been unable to resolve these issues in a 
manner sufficient to calculate NEIC's earnings for the quarter, but in 
any event will be in a position to prepare and file its financial 
statements (and the related Management's Discussion and Analysis section 
and Financial Data Schedule) by November 21, 1997.


PART IV - OTHER INFORMATION

(1)  Name and telephone number of person to contact in regard to this 
notification:  Gregory S. Fryer, Esq., Verrill & Dana, 207-774-4000.

(2)  Have all other periodic reports required under Section 13 or 15(d) 
of the Securities Exchange Act of 1934 during the preceding 12 months 
been filed?                                [x] Yes       [ ] No

(3)  Is it anticipated that any significant change in results of 
operations from the corresponding period for the last fiscal year will 
be reflected by the earnings statements to be included in the subject 
report?                                    [x] Yes       [ ] No

For the reasons described in Part III above, net income (loss) cannot 
presently be computed for the third fiscal quarter of 1997.  Depending 
on the outcome of certain discussions with the Registrant's reinsurer 
concerning the application of a certain payment formula, net income 
(loss) for the quarter could range from a high of approximately $200,000 
to a low of approximately ($390,000).  For the corresponding quarter 
of 1996, the Registrant reported net income of $330,133.  The 
discussions with the reinsurer are expected to affect "premiums ceded" 
and "reinsurance recoveries, net of salvage."  For the corresponding 
quarter of 1996, the Registrant reported $1,234,411 and $(848,788) for 
these items, respectively.


      North East Insurance Company has caused this notification to be 
signed on its behalf by the undersigned thereunto duly authorized.

Date:  November 14, 1997         By:  /s/  Robert G. Schatz      
                                    -------------------------------
                                      Robert G. Schatz, President
                                      and Chief Executive Officer


EXHIBIT 1

                             MIC Re Corporation
                      6000 Midlantic Drive, 7th Floor
                                P.O. Box 5041
                            Mt. Laurel, NJ 08054
                   (609) 778-3200     FAX (609) 778-8971


November 14, 1997


Mr. Ronald A. Libby
Chief Operating Officer
North East Insurance Company
Post Office Box 1418
Scarborough, Maine 04070-1418

    Re:  Policy #E-20902.95
         North East Insurance Company

Dear Ron:

This will confirm that application of the Quota Share Run Off Formula 
and First Excess Treaty Recoveries for the third quarter of 1997 gives 
rise to concern related to loss recoveries and premiums cessions that 
are inconsistent with the parties' original intentions in structuring 
the reinsurance program.

We will be meeting on November 19, 1997, to agree upon the appropriate 
application of the Quota Share Run Off Formula and First Excess Treaty 
Recoveries.  Subject to our ongoing analysis of this matter, and without 
committing ourselves to a particular figure, we presently are in 
agreement that the magnitude of such adjustment is likely to be 
significant for purposes of calculating NEIC's earnings for a given 
quarter.

You have stated that NEIC will be filing a statement with the Securities 
and Exchange Commission regarding a delay in the filing of its quarterly 
financial statement.  We consent to the filing of this letter as an 
exhibit to such statements.

We look forward to meeting with you next week Ron.

Sincerely,

/s/ James D. Erb, Are
    Vice President - Treaty