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FIRST COLONY REPORTS FIRST QUARTER RESULTS

 LYNCHBURG, Va., April 16 /PRNewswire/ -- First Colony Corporation (NYSE: FCL) today reported that net income for the first quarter of 1993 was $56.7 million, or $1.15 per share, up 54 percent from the first quarter 1992 net income of $36.8 million, or $0.75 per share. This higher income is due primarily to a significant increase in realized investment gains.
 In the first quarter, after-tax realized investment gains were $33.4 million, or $0.68 per share vs. $11.0 million, or $0.22 per share, in 1992. Realized gains resulted in an increase in the amortization of deferred acquisition costs, which reduced operating income in 1993 and 1992. Realized gains for the 1993 quarter reflect $26.1 million of gains from involuntary calls in the bond and preferred stock portfolio and $7.3 million of gains taken in the common stock portfolio.
 Pre-tax operating income in the first quarter of 1993, excluding realized investment gains, was $34.7 million, down 4 percent from $36.1 million in 1992. Excluding the higher amortization costs related to realized gains, pre-tax operating income increased 3 percent. In addition, pre-tax operating income for 1993 was reduced by debt service cost in connection with the company's bank loan entered into in December 1992. If debt service cost also were excluded, pre-tax operating income would have been up 10 percent for the quarter.
 Net income, excluding realized gains, was 9 percent lower for the 1993 quarter reflecting a higher effective tax rate compared with 1992.
 Income benefited from relatively better life insurance mortality and accelerated income from collateralized mortgage obligations (CMOs) in the bond portfolio, but was more than offset by higher amortization costs related to realized investment gains, lower investment income from the reinvestment of involuntary bond call proceeds and debt service cost.
 Total revenues for the first quarter of 1993 were $359.2 million, up 24 percent from $290.4 million for the first quarter of 1992. The increase in revenues includes higher net investment income of $15.7 million for the quarter, higher realized investment gains of $34.0 million and higher premiums of $16.9 million.
 Life insurance in force at March 31, 1993, amounted to $100.2 billion, up 4 percent from Dec. 31, 1992. Compared with year-end 1992, assets were $7.8 billion, up 5 percent, and shareholders' equity was $882.5 million, or $17.90 per share, up 8 percent.
 Bruce C. Gottwald, Jr., chairman and chief executive officer of First Colony Corporation, said: "Overall, we are pleased with our first quarter performance. Net income was up significantly, annuity sales were strong and pre-tax operating income after adjusting for higher amortization costs related to realized gains was favorable."
 First Colony Corporation is a Richmond, Va.-based holding company which owns First Colony Life Insurance Company and its wholly owned subsidiary, American Mayflower Life Insurance Company of New York. Based in Richmond, Ethyl Corporation (NYSE: EY) owns approximately


80 percent of First Colony's outstanding stock and has proposed to spin off the remaining shares to shareholders later in 1993, subject to approval by Ethyl's board of directors.
 -0- 4/16/93
 /CONTACT: Frank G. Land, CLU, First Colony Corporation, 804-948-5293/
 (FCL EY)


CO: First Colony Corporation ST: Virginia IN: INS IN: ERN

TW-IH -- DC015 -- 6743 04/16/93 11:58 EDT
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Publication:PR Newswire
Date:Apr 16, 1993
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