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FINANCIAL GUARANTY REPORTS EXCEPTIONAL YEAR-END RESULTS

 NEW YORK, Feb. 4 /PRNewswire/ -- Financial Guaranty Insurance Company (FGIC) today reported strong 1992 results with a 13 percent increase in net income, a 34 percent gain in net premiums written and a 16 percent rise in its capital base.
 Financial Guaranty's net income for 1992 was $131.3 million on revenues of $218.6 million compared to 1991 net income of $116.7 million on revenues of $193.2 million. FGIC's 1992 net income for the fourth quarter was $31.0 million compared to $29.8 million for the same period in 1991. All earnings are stated on a GAAP basis unless otherwise noted.
 The company also reported impressive net premiums written for 1992 of $205.8 million compared to $153.2 million for 1991. Earned premiums increased 15 percent to $112.8 million in 1992 from $98.5 million in 1991. Accelerated earned premiums due to bond calls and refundings were $22.0 million in 1992 compared to $23.6 million in 1991.
 Financial Guaranty's statutory capital base, comprised of capital and surplus and the contingency reserve, totalled $814.6 million as of Dec. 31, 1992, an increase from $701.6 million as of Dec. 31, 1991. The company's statutory unearned premium reserve increased 20 percent to $694.6 million as of Dec. 31, 1992 versus $577.7 million at Dec. 31, 1991. FGIC's statutory policyholders' reserves, which include capital and surplus, loss and loss adjustment expense reserves, the contingency reserve, and unearned premium reserve, totalled $1.54 billion at Dec. 31, 1992, an 18 percent increase from the $1.30 billion reported as of Dec. 31, 1991.
 "We are extremely pleased that FGIC has again posted outstanding financial results," said Ann C. Stern, president and chief executive officer. "Our results were fueled in no small part by the continued demand for bond insurance by retail investors -- contributing to a record insured industry market share of 34 percent for 1992. Clearly, retail investors appreciate the value and security of bond insurance as an increasingly important portion of their investment portfolios."
 FGIC's total assets increased 15 percent to $1.68 billion as of Dec. 31, 1992 from $1.47 billion as of Dec. 31, 1991. The company's investment portfolio, consisting predominantly of high-grade municipal securities, totalled $1.54 billion as of Dec. 31, 1992, an increase of 15 percent compared to $1.34 billion as of Dec. 31, 1991.
 A subsidiary of GE Capital, FGIC Corporation, through its subsidiary, Financial Guaranty Insurance Company, has established itself as a leading insurer of securities sold in the capital markets, principally municipal bonds. The company also guarantees a growing variety of structured debt issues outside the municipal market.
 GE Capital, headquartered in Stamford, Conn., a wholly owned subsidiary of General Electric Company (NYSE: GE), is a diversified financial services company with assets exceeding $85 billion. GE Capital's financing activities include equipment and asset management, equipment financing, consumer/retail financial services, private label and Visa and MasterCard credit cards, automotive financing, commercial real estate financing and specialty insurance, such as private mortgage and municipal bonds. GE is a diversified manufacturing, technology and services company with operations worldwide.
 FINANCIAL GUARANTY INSURANCE COMPANY
 GAAP
 Balance Sheets
 (In thousands)
 Dec. 31 1992 1991
 Assets:
 Investments:
 Fixed maturity securities,
 at amortized cost $1,047,156 $ 841,562
 Fixed maturity securities held
 in trading accounts, at market 422,929 369,855
 Short-term investments, at cost,
 which approximates market 68,352 129,050
 Total investments 1,538,437 1,340,467
 Cash 442 2
 Accrued investment income 33,528 28,102
 Premiums receivable 24 36
 Deferred policy acquisition costs 97,295 93,655
 Receivable for securities sold -- 2,317
 Property and equipment, net of
 accumulated depreciation 10,338 929
 Prepaid expenses and other assets 501 1,208
 Total assets 1,680,565 1,466,716
 Liabilities:
 Unearned premiums 571,219 478,232
 Loss and loss adjustment expense reserves 39,706 24,598
 Ceded reinsurance balances payable 6,841 6,513
 Accounts payable and accrued expenses 32,896 36,421
 Current federal income taxes payable 18,643 39,353
 Deferred federal income taxes payable 46,636 41,454
 Payable for securities purchased 13,200 18,377
 Total liabilities 729,141 644,948
 Stockholders' Equity:
 Common stock, par value $250.00 per share 2,500 2,500
 Additional paid-in capital 324,639 324,639
 Unrealized gains on fixed maturity
 securities, net of tax 7,267 7,360
 Foreign currency translation adjustment (1,597) --
 Retained earnings 618,615 487,269
 Total stockholder's equity 951,424 821,768
 Total liabilities and stockholder's
 equity 1,680,565 1,466,716
 FINANCIAL GUARANTY INSURANCE COMPANY
 GAAP
 Statements of Income
 (In thousands)
 Period ended Three months Year
 Dec. 31 1992 1991 1992 1991
 (Unaudited)
 Revenues:
 Gross premiums written $71,746 $59,905 $244,507 $181,572
 Ceded premiums written (10,181) (12,848) (38,743) (28,417)
 Net premiums written 61,565 47,057 205,764 153,155
 Increase in unearned
 premiums (34,798) (13,654) (92,987) (54,683)
 Premiums earned 26,767 33,403 112,777 98,472
 Net investment income 25,032 21,444 94,830 83,346
 Net realized gains 1,011 3,057 10,992 11,368
 Total revenues 52,810 57,904 218,599 193,186
 Losses and loss adjustment
 expenses 6,886 9,528 16,883 14,699
 Policy acquisition costs 3,445 5,596 16,178 15,001
 Other underwriting expenses 4,688 6,314 21,702 20,222
 Total losses and expenses 15,019 21,438 54,763 49,922
 Income before Federal
 income taxes 37,791 36,466 163,836 143,264
 Federal income taxes 6,780 6,715 32,490 26,568
 Net income 31,011 29,751 131,346 116,696
 Supplementary Statutory Financial Information
 (In thousands)
 12/31/92 12/31/91 12/31/90
 Capital and surplus $621,287 $549,866 $487,641
 Contingency reserve 193,313 151,778 114,501
 Capital base 814,600 701,644 602,142
 Loss and loss adjustment
 expense reserves 28,592 19,567 13,155
 Unearned premium reserve 694,566 577,732 506,891
 Total policyholders'
 reserves 1,537,758 1,298,943 1,122,188
 -0- 2/4/93
 /CONTACT: David Caouette of Financial Guaranty Insurance Company, 212-312-3009/


CO: Financial Guaranty Insurance Company ST: New York IN: FIN SU: ERN

TS-OS -- NY080 -- 3028 02/04/93 13:30 EST
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