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

                                 FORM 10-QSB


[X]    QUARTERLY REPORT PURSUANT TO SECTION 13 OF 15(d) OF THE SECURITIES 
       EXCHANGE ACT OF 1934  

       For the quarterly period ended September 30, 1997

[ ]    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 1-11184


                     NORTH EAST INSURANCE COMPANY
       (Exact name of small business issuer as specified in its charter)


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


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


                               (207) 883-2232
                        (Issuer's telephone number)


Check whether the issuer (1) filed all reports required to be filed by 
Section 13 or 15(d) of the Exchange Act during the past 12 months (or 
for such shorter period that the issuer 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 November 13, 1997, there were 3,046,842 outstanding shares of 
Common Stock, $1.00 par value, the only authorized class of common stock 
of the issuer.

Transitional Small Business Disclosure Format:  Yes [ ]  No [X]



                       PART I - FINANCIAL INFORMATION

For reasons stated in its Form 12b-25, the Registrant is presently 
unable to complete Items 1 and 2 of this Part I.  Such items will be 
filed by amendment by November 21, 1997.



                         PART II - OTHER INFORMATION

Item 6.

   a)  Exhibits pursuant to Item 601 of Regulation S-B

       27  Financial Data Schedule (to be filed by amendment
           by November 21, 1997)

   b)  Reports on Form 8-K

       None



                                 SIGNATURES

In accordance with the requirements of the Exchange Act, the Registrant 
caused this report to be signed on its behalf by the undersigned, 
thereunto duly authorized.


                                       NORTH EAST INSURANCE COMPANY

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


Date:  November 14, 1997               By  /s/ Graham S. Payne
                                           Graham S. Payne, Treasurer
                                           and Chief Financial Officer