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ALLEGHANY CORPORATION REPORTS EARNINGS

 NEW YORK, July 22 /PRNewswire/ -- Net earnings of Alleghany Corporation (NYSE: Y) were $3.20 per share of common stock in the second quarter of 1993 compared with $3.28 per share in the second quarter of 1992, John J. Burns, president and chief executive officer of Alleghany announced today. In the first six months of 1993, Alleghany's net earnings per share were $8.20, compared with $6.49 in the first six months of 1992.
 Highlights are as follows (in millions except for shares and per share amounts):
 Periods ended Quarter Six months
 June 30 1993 1992(A) 1993 1992(A)
 Revenues $451.4 $478.8 $869.7 $878.7
 Earnings before income taxes 33.5 52.5 54.5 72.3
 Earnings before cumulative
 effect of a change in
 accounting for income taxes 21.3 21.8 54.7 34.1
 Cumulative effect of a change
 in accounting for income taxes -- -- -- 9.1
 Net earnings $21.3 $21.8 $54.7 $43.2
 Per share of common stock(B):
 Operations $3.20 $3.28 $8.20 $5.12
 Cumulative effect of
 change in accounting
 for income taxes -- -- -- $1.37
 Net earnings $3.20 $3.28 $8.20 $6.49
 Average number of
 outstanding shares
 of common stock(B) 6,668,309 6,661,458 6,667,930 6,657,805
 (A) -- Restated to reflect the adoption of the Financial Accounting Standards Board's Statement No. 109, Accounting for Income Taxes.
 (B) -- Adjusted to reflect dividends of common stock declared in March of 1992 and 1993.
 Alleghany's title insurance and investment management subsidiary, Chicago Title and Trust Company, contributed $26.7 million to Alleghany's earnings before income taxes in the 1993 second quarter, compared with $39.9 million in the 1992 second quarter: its contribution in the 1992 quarter, however, included Chicago Title's $22.6 million share of a non-recurring recovery in a lawsuit against California Canadian Bank(A). Exclusive of this recovery, Chicago Titles' contribution was more than 54 percent higher in the 1993 quarter than the year before. The contributions to earnings before income taxes made by Alleghany's other two principal operating units, Sacramento Savings Bank (consumer banking) and World Minerals Inc. (industrial minerals), were lower in the 1993 second quarter than the year before.
 The comparative contributions to second-quarter net earnings per share made by Alleghany's principal operating units, and by Alleghany's parent-company and other operations, may be summarized as follows:
 Quarters ended June 30
 Chicago Sacramento World Parent & Total
 Title Savings Minerals Others
 1993
 Operations $2.58 $0.65 $0.29 ($0.45) $3.07
 Security transactions 0.07 0.08 -- (0.02) 0.13
 Recovery in lawsuit -- -- -- -- --
 Total $2.65 $0.73 $0.29 ($0.47) $3.20
 1992
 Operations $1.65 $0.88 $0.33 ($1.95) $0.91
 Security transactions 0.08 0.03 -- 0.28 0.39
 Recovery in lawsuit 1.98 -- -- -- 1.98
 Total $3.71 $0.91 $0.33 ($1.67) $3.28
 (A) -- As previously reported, the beneficial effect of this recovery on Alleghany's net earnings was almost entirely offset by tax provisions and other previously anticipated charges, principally at the parent company.
 Comparative earnings in the two six-month periods were affected by two important first-quarter items that have been explained previously: in the 1993 quarter, a credit of $20 million, or $3.00 a share, resulting from adjustment of Alleghany's tax reserves; and in the 1992 quarter, a credit of $9.1 million, or $1.37 a share, reflecting the cumulative effect of a change in accounting for income taxes brought about by Alleghany's adoption of the Financial Accounting Standards Board's Statement No. 109.
 The comparative contributions to net earnings per share in the respective six-month periods made by Alleghany's principal operating units, and by Alleghany's parent-company and other operations, may be summarized as follows:
 Quarters ended June 30
 Chicago Sacramento World Parent & Total
 Title Savings Minerals Others
 1993
 Operations $3.23 $1.27 $0.39 ($0.94) $3.95
 Security transactions 0.53 0.08 -- 0.64 1.25
 FASB 109 -- -- -- -- --
 Adjustment of tax
 reserves -- -- -- 3.00 3.00
 Recovery in lawsuit -- -- -- -- --
 Total $3.76 $1.35 $0.39 $2.70 $8.20
 1992
 Operations $2.44 $1.65 $0.65 ($2.11) $2.63
 Security transactions 0.13 0.03 -- 0.35 0.51
 FASB 109 0.67 0.14 -- 0.56 1.37
 Adjustment of tax
 reserves -- -- -- -- --
 Recovery in lawsuit 1.98 -- -- -- 1.98
 Total $5.22 $1.82 $0.65 ($1.20) $6.49
 On a pro forma basis, adjusted to reflect marketable securities at market as well as dividends paid in common stock, Alleghany common stockholders' equity per share as of the end of the 1993 second quarter was $133.15, compared with $117.03 a year earlier.
 ALLEGHANY CORPORATION AND SUBSIDIARIES
 Combining Statements of Earnings
 (dollars in thousands, unaudited)
 Periods Corporate
 Ended Six Months Activities &
 June 30, 1993 Chicago Sacramento World Intercompany
 Title Savings Minerals Eliminations Combined
 Revenues:
 Title premiums,
 escrow and
 trust fees $620,945 $0 $0 $0 $620,945
 Interest on
 loans receivable 0 89,052 0 (382) 88,670
 Interest,
 dividend and
 other income 26,820 17,562 32 29,170 73,584
 Net mineral and
 filtration sales 0 0 73,726 0 73,726
 Net gain on
 investment
 transactions 5,423 939 0 6,408 12,770
 Total revenues 653,188 107,553 73,758 35,196 869,695
 Cost and expenses:
 Salaries,
 commissions
 and other
 employee
 benefits 436,896 13,954 0 119 450,969
 Administrative,
 selling and
 other operating
 expenses 118,137 20,139 13,446 24,195 175,917
 Provision for
 title losses
 and other
 claims 55,789 0 0 0 55,789
 Cost of mineral
 and filtration
 sales 0 0 53,366 0 53,366
 Interest on
 deposits 0 57,655 0 (138) 57,517
 Interest expense 4,661 123 2,665 6,423 13,872
 Corporate
 administration 0 0 0 7,752 7,752
 Total costs and
 expenses 615,483 91,871 69,477 38,351 815,182
 Earnings/(loss)
 before income
 taxes $37,705 $15,682 $4,281 ($3,155) $54,513
 Income taxes -- -- -- -- (157)
 Earnings before
 cumulative effect
 of a change in
 accounting for
 income taxes -- -- -- -- 54,670
 Cumulative effect
 on prior years of
 change in accounting
 for income taxes -- -- -- -- 0
 Net earnings -- -- -- -- $54,670
 ALLEGHANY CORPORATION AND SUBSIDIARIES
 Combining Statements of Earnings
 (dollars in thousands, unaudited)
 Periods Corporate
 Ended Six Months Activities &
 June 30, 1992(A) Chicago Sacramento World Intercompany
 Title Savings Minerals Eliminations Combined
 Revenues:
 Title premiums,
 escrow and
 trust fees $582,264 $0 $0 $0 $582,264
 Interest on
 loans receivable 0 107,002 0 (241) 106,761
 Interest,
 dividend
 and other
 income 62,590 19,322 314 30,107 112,333
 Net mineral and
 filtration sales 0 0 72,156 0 72,156
 Net gain on
 investment
 transactions 1,281 302 0 3,574 5,157
 Total revenues 646,135 126,626 72,470 33,440 878,671
 Cost and expenses:
 Salaries,
 commissions
 and other
 employee
 benefits 408,623 12,605 0 74 421,302
 Administrative,
 selling and
 other operating
 expenses 130,407 22,733 13,361 22,256 188,757
 Provision for
 title losses
 and other claims 53,424 0 0 0 53,424
 Cost of mineral
 and filtration
 sales 0 0 50,278 0 50,278
 Interest on deposits 0 70,135 0 (270) 69,855
 Interest expense 5,300 1,166 2,232 7,554 16,252
 Corporate
 administration 0 0 0 6,473 6,473
 Total costs and
 expenses 597,754 106,639 65,871 36,087 806,351
 Earnings/(loss)
 before income
 taxes $48,381 $19,987 $6,599 ($2,647) $72,320
 Income taxes 38,267
 Earnings before
 cumulative effect
 of a change in
 accounting for
 income taxes 34,053
 Cumulative effect
 on prior years
 of change in
 accounting for
 income taxes 9,145
 Net earnings $43,196
 NOTE: (a) Restated to reflect the adoption of FASB Statement No.
 109, "Accounting For Income Tax."
 ALLEGHANY CORPORATION AND SUBSIDIARIES
 Combining Statements of Earnings
 (dollars in thousands, unaudited)
 Periods Corporate
 Ended Three Months Activities &
 June 30, 1993 Chicago Sacramento World Intercompany
 Title Savings Minerals Eliminations Combined
 Revenues:
 Title premiums,
 escrow and
 trust fees $331,095 $0 $0 $0 $331,095
 Interest on
 loans receivable 0 44,153 0 (185) 43,968
 Interest,
 dividend and
 other income 13,265 9,241 15 14,630 37,151
 Net mineral
 and filtration
 sales 0 0 37,735 0 37,735
 Net gain on
 investment
 transactions 746 939 0 (277) 1,458
 Total revenues 345,106 54,333 37,750 14,218 451,407
 Cost and expenses:
 Salaries,
 commissions and
 other employee
 benefits 224,093 6,977 0 50 231,120
 Administrative,
 selling and
 other operating
 expenses 61,907 9,871 6,216 12,295 90,289
 Provision for
 title losses
 and other
 claims 30,144 0 0 0 30,144
 Cost of mineral
 and filtration
 sales 0 0 27,041 0 27,041
 Interest on deposits 0 28,904 0 (69) 28,835
 Interest expense 2,284 64 1,361 3,159 6,868
 Corporate
 administration 0 0 0 3,630 3,630
 Total costs and
 expenses 318,428 45,816 34,618 19,065 417,927
 Earnings/(loss)
 before income
 taxes $26,678 $8,517 $3,132 ($4,847) 33,480
 Income taxes 12,153
 Earnings before
 cumulative effect
 of a change in
 accounting for
 income taxes 21,327
 Cumulative effect
 on prior years of
 change in accounting
 for income taxes 0
 Net earnings $21,327
 ALLEGHANY CORPORATION AND SUBSIDIARIES
 Combining Statements of Earnings
 (dollars in thousands, unaudited)
 Periods Corporate
 Ended Three Months Activities &
 June 30, 1992 (A) Chicago Sacramento World Intercompany
 Title Savings Minerals Eliminations Combined
 Revenues:
 Title premiums,
 escrow and
 trust fees $313,284 $0 $0 $0 $313,284
 Interest on
 loans receivable 0 53,074 0 (199) 52,875
 Interest, dividend
 and other income 48,057 8,955 286 14,683 71,981
 Net mineral and
 filtration sales 0 0 36,656 0 36,656
 Net gain on
 investment
 transactions 816 281 0 2,891 3,988
 Total revenues 362,157 62,310 36,942 17,375 478,784
 Cost and expenses:
 Salaries,
 commissions and
 other employee
 benefits 216,629 6,362 0 45 223,036
 Administrative,
 selling and
 other operating
 expenses 73,529 10,808 7,100 11,129 102,566
 Provision for
 title losses
 and other claims 29,471 0 0 0 29,471
 Cost of mineral
 and filtration
 sales 0 0 25,269 0 25,269
 Interest on deposits 0 34,199 0 (31) 34,168
 Interest expense 2,592 513 1,235 3,666 8,006
 Corporate
 administration 0 0 0 3,799 3,799
 Total costs and
 expenses 322,221 51,882 83,604 18,608 426,315
 Earnings/(loss)
 before income
 taxes $39,936 $10,428 $3,338 ($1,233) 52,469
 Income taxes 30,624
 Earnings before
 cumulative effect
 of a change in
 accounting for
 income taxes 21,845
 Cumulative effect
 on prior years
 of change in
 accounting for
 income taxes 0
 Net earnings 21,845
 NOTE: (A) Restated to reflect the adoption of FASB Statement No. 109, "Accounting for Income Taxes."
 -0- 7/22/93
 /CONTACT: T. E. Somerville of Alleghany Corporation, 212-752-1356/
 (Y)


CO: Alleghany Corporation ST: New York IN: INS SU: ERN

TM-TS -- NY094 -- 4883 07/22/93 19:36 EDT
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Publication:PR Newswire
Date:Jul 22, 1993
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