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FOREMOST CORPORATION OF AMERICA REPORTS SIGNIFICANT EARNINGS INCREASE FOR FIRST QUARTER, 1992

 FOREMOST CORPORATION OF AMERICA REPORTS
 SIGNIFICANT EARNINGS INCREASE FOR FIRST QUARTER, 1992
 GRAND RAPIDS, Mich., April 22 /PRNewswire/ -- The combined effect of controlling costs and seeking adequate premium rates plus an improvement in weather patterns during the first quarter of 1992 helped produce excellent financial results for Foremost Corporation of America (FCOA) (NASDAQ-NMS: FCOA), Chairman of the Board, CEO and President Richard L. Antonini announced this morning.
 FCOA's first-quarter operating income jumped to $.54 per share compared with $.34 per share for 1991 -- an increase of nearly 60 percent. The quarter's realized gains of $.06 per share brought the company's net income to $.60 per share. This compares with net income of $.45 per share in 1991 when realized gains were $.11 per share. FCOA reported a first-quarter combined ratio of 98.0 percent for its property and casualty group. This compares with a combined ratio of 103.3 percent during the same quarter of 1991.
 "In 1991, the first quarter was plagued with extremely bad weather. This year we saw a return to more normal weather patterns. The best news for the company, though, is the impact of our business strategies on the combined ratio. Our efforts to seek adequate rates and to reduce the cost of acquiring business has had a significant impact," Antonini said.
 The company reported increases in mobile home and recreational vehicle insurance written premium during the first quarter. The company's mobile home line showed an increase of 7 percent over 1991. Recreational vehicle lines reported a 6-percent increase over 1991. Gains in market share and rate increases were credited for the higher- than-expected premium increases.
 The company saw declines in automobile, commercial and other insurance lines, in accordance with the company's plans.
 After-tax investment income dropped over 15 percent due, primarily, to lower interest rates. Investment income was also affected by a shift toward taxable securities and a slightly lower investment base. Investment income was up slightly from the fourth quarter of 1991, only the second such quarter-to-quarter improvement in two years.
 FCOA's annual Shareholders' Meeting will be May 5, 1992, at 10:30 a.m. at the corporate headquarters building in Caledonia Township, Mich.
 Foremost Corporation of America and its subsidiaries are primarily engaged in providing insurance and financial services to the manufactured housing and recreational vehicle industries.
 FOREMOST CORPORATION OF AMERICA
 AND SUBSIDIARIES
 CONDENSED STATEMENTS OF INCOME BY BUSINESS SEGMENT
 (UNAUDITED)
 Three Months Ended
 March 31,
 1992 1991
 (In thousands except per share data)
 Net income (loss) after taxes:
 Property and casualty insurance $ 7,340 $ 6,131
 Life insurance 515 688
 Total insurance operations 7,855 6,819
 Parent and other (1,450) (1,970)
 Consolidated net income $ 6,405 $ 4,849
 Per share of common stock:
 Consolidated net income $ .60 $ .45
 Average shares outstanding 10,716 10,716
 -0- 4/22/92
 /CONTACT: F. Robert Woudstra of Foremost Corporation of America, 616-956-8218/
 (FCOA) CO: Foremost Corporation of America ST: Michigan IN: INS SU: ERN


ML -- DE003 -- 1109 04/22/92 09:33 EDT
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Publication:PR Newswire
Date:Apr 22, 1992
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