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FOREMOST CORPORATION OF AMERICA REPORTS UNDERWRITING PROFIT IN FIRST QUARTER

 GRAND RAPIDS, Mich., April 22 /PRNewswire/ -- Foremost Corporation of America (NASDAQ-NMS: FCOA) (FCOA) ended the first quarter, 1993, with an underwriting profit despite losses from the mid-March storm that struck the eastern United States.
 Net income for the quarter was $.57 per share including realized gains of $.04 per share. That compares with $.60 per share in the first quarter 1992 when realized gains were $.06. March's storm cost first quarter earnings $.59 per share after reinsurance recoveries and taxes.
 FCOA reported a combined loss and expense ratio of 99.0 percent for the property and casualty group of companies. That compares to a 98.0 percent ratio for the same period last year. The March storm damage added 9.6 points to the first quarter's combined ratio.
 "To experience the second largest catastrophe loss in Foremost history and still show an underwriting profit is further confirmation of the strength of our basic business," said Richard L. Antonini, FCOA President, CEO and Chairman of the Board. "Our results demonstrate the progress we've made with our rate adequacy and expense control strategies."
 In FCOA's major line, mobile home insurance, the written premium increased by 11 percent during the first quarter over the same period of 1992. For the quarter, total written premium increased three percent.
 After-tax investment income was down nearly six percent during the first quarter of 1993. Lower interest rates on reinvestments was the primary cause of the drop. Overall, average invested assets increased slightly during the last two quarters.
 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
 CONSOLIDATED STATEMENTS OF INCOME BY BUSINESS SEGMENT
 (UNAUDITED)
 Three
 Months Ended
 March 31,
 1993 1992
 (In thousands except per share data)
 Total revenue $ 114,540 $ 113,511
 Net income (loss) after taxes:
 Property and casualty insurance $ 6,345 $ 7,340
 Life insurance 668 515
 Total insurance operations 7,013 7,855
 Parent and other (924) (1,450)
 Consolidated net income $ 6,089 $ 6,405
 Per share of common stock:
 Consolidated net income $ 0.57 $ 0.60
 Average shares outstanding 10,717 10,716
 -0- 4/22/93
 /CONTACT: F. Robert Woudstra of Foremost Corporation of America, 616-956-8218/
 (FCOA)


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

ML -- DE003 -- 9189 04/22/93 08:45 EDT
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Publication:PR Newswire
Date:Apr 22, 1993
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