UPDATE 1-Patriot Risk IPO to raise up to $204 mln

* Plans to sell 17 million shares

* Expects shares to price for $10 to $12

NEW YORK Jan 19 (Reuters) - Patriot Risk Management Inc, which underwrites and administers workers' compensation insurance, said on Tuesday it hopes to raise up to $204 million in its initial public offering.

The insurance company expects to sell 17 million shares at $10 to $12 a share, according to a filing with the U.S. Securities and Exchange Commission. At the midpoint, the IPO would raise about $187 million.

The company, which also provides claims services, expects net proceeds of about $172 million, which it plans to contribute to its premium writings and use to buy property and casualty insurer PF&C.

Patriot Risk Management reported total revenue of $40.4 million in the nine months ended Sept. 30, up 5.7 percent from the same period a year earlier. It reported a net income of $2.4 million, up 296 percent.

The company plans to list on the New York Stock Exchange under the symbol "PMG." The offering is being led by FBR Capital Markets and the underwriters have the option to purchase an additional 2.55 million shares. (Reporting by Clare Baldwin; Editing by Derek Caney)