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FOREMOST CORPORATION OF AMERICA ANNOUNCES THIRD QUARTER RESULTS

 GRAND RAPIDS, Mich., Oct. 19 /PRNewswire -- Foremost Corporation of America (NASDAQ: FCOA) today announced net earnings of $.73 per share with no realized gains for the third quarter of 1993. The quarterly net earnings compare with $.27 per share, including $.02 per share realized gains, in 1992.
 Third quarter results for 1993 also include a charge of $.04 per share due to the recently legislated increase in the corporate income tax.
 Per share net income for the first nine months of 1993 was $2.00 which
compares with $1.42 for the first nine months of 1992. Those amounts include realized gains of $.11 per share and $.10 per share, respectively.
 The quarterly combined loss and expense ratio for the property and casualty group was 96 percent. That compares with a third quarter ratio of 102.9 percent in 1992.
 "We had an excellent third quarter, in large part because of our disciplined underwriting which helped us limit losses from the floods of the Midwest," said FCOA Chairman, CEO and President, Richard L. Antonini.
 FCOA reported a nine-month combined loss and expense ratio of 97.4 percent which compares with a 99.6 percent ratio for the first nine months of 1992. That result is despite a year of catastrophe losses which, net of reinsurance recoveries, exceed 1992 levels.
 Total written premium was down slightly for the quarter and was even through the first nine months of the year. Mobile home written premium was even for the quarter and up five percent for the first nine months of 1993. Recreational vehicle premium was down this quarter, by five percent, and up one percent for the year.
 After-tax investment income decreased 11 percent from the third quarter 1992 and was down eight percent for the year. The primary reason for the decrease continues to be lower interest rates.
 Foremost Corporation of America is a holding company which, through its subsidiaries, is primarily engaged in providing property and casualty insurance to those who buy, sell or finance manufactured homes and recreational vehicles.
 FOREMOST CORPORATION OF AMERICA AND SUBSIDIARIES
 CONDENSED STATEMENTS OF INCOME BY BUSINESS SEGMENT
 (Unaudited)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 (In thousands except per share data)
 Total revenue $115,299 $116,896 $343,871 $344,627
 Net income (loss) after taxes:
 Property and casualty
 insurance $7,298 $4,375 $21,527 $18,747
 Life Insurance 383 118 1,598 1,097
 Total insurance operations 7,681 4,493 23,125 19,844
 Parent and other 122 (1,586) (1,726) (4,625)
 Consolidated net income $7,803 $2,907 $21,399 $15,219
 Per share of common stock:
 Consolidated net income $.73 $.27 $2.00 $1.42
 Average shares outstanding 10,721 10,717 10,719 10,717
 -0- 10/19/93
 /CONTACT: F. Robert Woudstra of Foremost Corporation of America, 616-956-8218/
 (FCOA)


CO: Foremost Corporation of America ST: Michigan IN: INS SU: ERN

DC-KR -- DE009 -- 3804 10/19/93 09:33 EDT
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Publication:PR Newswire
Date:Oct 19, 1993
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