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FOREMOST CORPORATION OF AMERICA REPORTS IMPROVED FOURTH-QUARTER EARNING RESULTS

 FOREMOST CORPORATION OF AMERICA REPORTS
 IMPROVED FOURTH-QUARTER EARNING RESULTS
 GRAND RAPIDS, Mich., Feb. 4 /PRNewswire/ -- Foremost Corporation of America (NASDAQ-NMS: FCOA) today reported an increase in per-share operating earnings for the fourth quarter and last six months of 1991 over 1990. Also showing improvement in the final quarter was the combined loss and expense ratio for the corporation's property and casualty group of insurance companies.
 "I'm heartened by our results at the end of 1991. It reflects the progress we've made toward our long-term goals. In 1991, we worked hard to reduce expenses, streamline underwriting, and price our products properly," said Richard L. Antonini, FCOA's president, CEO and chairman of the board.
 Per-share operating earnings for the quarter were $.70 compared to $.69 in 1990. For the last six months of 1991 these earnings were $1.45 compared with $1.16. The year-end improvement was not enough to offset the weak results from weather-related catastrophes that plagued the insurance industry during the first half of the year. While the combined ratio improved from 97.4 percent in the final quarter of 1990 to 97.1 percent in 1991, the losses of the first six months resulted in a year-end combined ratio of 104 percent compared with 101.2 percent at year end 1990.
 Also in 1991, mobile home written premium rose 10 percent for the quarter and 6 percent for the year. As the recessionary economy continues to depress sales of new mobile homes and push new shipments to their lowest levels in decades, the jumps reflect Foremost's growing market share.
 Written premium for recreational vehicle grew also, up 3 percent for the quarter and 1 percent for the year.
 After-tax investment income decreased 20 percent in fourth quarter 1991 from 1990 and dropped 13 percent for the year. The drop is the result of a lower average invested asset base and lower interest rates.
 Foremost Corporation of America is a holding company, which, through its subsidiaries, provides property and casualty insurance to people who buy, sell or finance manufactured homes and recreational vehicles.
 FOREMOST CORPORATION OF AMERICA AND SUBSIDIARIES
 CONSOLIDATED STATEMENTS OF INCOME BY BUSINESS SEGMENT
 (UNAUDITED)
 Three Twelve
 Months Ended Months Ended
 December 31, December 31,
 1991 1990 1991 1990
 (In thousands except per share data)
 Net income (loss) after taxes:
 Property and casualty
 insurance $ 6,676 $ 2,790 $16,327 $20,115
 Life insurance 631 650 2,828 2,661
 Total insurance operations 7,307 3,440 19,155 22,776
 Parent and other (655) (1,632) (9,462) (5,824)
 Net income -
 continuing operations 6,652 1,808 9,693 16,952
 Net loss -
 discontinued operations - (7) - (2,053)
 Consolidated net income $ 6,652 $ 1,801 $ 9,693 $14,899
 Per share of common stock:
 Net income -
 continuing operations $ .62 $ .17 $ .90 $ 1.48
 Net loss -
 discontinued operations - - - (.18)
 Consolidated net income $ .62 $ .17 $ .90 $ 1.30
 Average shares outstanding 10,716 10,716 10,716 11,463
 -0- 2/4/92
 /CONTACT: F. Robert Woudstra of Foremost Corporation of America, 616-956-8218/
 (FCOA) CO: Foremost Corporation of America ST: Michigan IN: INS SU: ERN


DH-ML -- DE005 -- 6539 02/04/92 09:25 EST
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Publication:PR Newswire
Date:Feb 4, 1992
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