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AMERICAN RELIANCE GROUP, INC. UPDATES HURRICANE ANDREW CLAIMS

 AMERICAN RELIANCE GROUP, INC. UPDATES HURRICANE ANDREW CLAIMS
 LAWRENCEVILLE, N.J., Sept. 18 /PRNewswire/ -- American Reliance Group, Inc. (AMEX: ARI) and its principal shareholder American Reliance Insurance Company reported today that they have received approximately 10,600 claims related to the damage in Southern Florida caused by Hurricane Andrew, up from the approximately 5,400 claims that they reported on Aug. 31.
 The company and American Reliance Insurance Company have approximately 150,000 insurance policies in force. The state of Florida accounts for 19 percent of the company's insurance policies in force.
 It was further reported that the severe nature of the property damage in Florida has made the collection of claims data unusually difficult. However, based upon preliminary data available, the companies currently estimate that their combined after-tax loss caused by Hurricane Andrew, net of reinsurance, will be approximately $20 million. Under a reinsurance pooling agreement with its principal shareholder, the company is responsible for 60 percent of the loss. The estimated losses relating to Hurricane Andrew are expected to reduce third quarter earnings approximately $4 per share net of realized portfolio gains of $1.10 per share. As a result, the company will incur a loss for the quarter.
 The companies carry reinsurance that cover a substantial portion of the expected gross loss and said they believe that the reinsurance will be 100 percent recoverable. The companies' primary reinsurers which represent more than 70 percent of the reinsurance recoverable include: Allstate, Prudential, St. Paul Fire & Marine, Lloyd's of London, NAC Reinsurance, General Security Assurance, Tokio Marine and Fire and National Reinsurance.
 American Reliance Group, Inc., a property and casualty insurance holding company, specializes in providing insurance coverage in New Jersey, Florida, Pennsylvania, Delaware, Maryland and Virginia to small to medium-sized businesses and individuals located primarily in rural and suburban locations.
 /delval/
 -0- 9/18/92
 /CONTACT: Bruce W. Herrick, chairman and president, or Dennis M. Bandish, senior vp-finance, of American Reliance, 609-896-1921/
 (ARI) CO: American Reliance Group, Inc.; American Reliance Insurance Company ST: New Jersey, Florida IN: INS SU:


MJ-CC -- PH030 -- 1274 09/18/92 16:28 EDT
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Publication:PR Newswire
Date:Sep 18, 1992
Words:350
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