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FREMONT GENERAL CORP. REPORTS 43 PERCENT INCREASE IN PRE-TAX EARNINGS

 SANTA MONICA, Calif., Oct. 20 /PRNewswire/ -- Fremont General Corp. (NYSE: FMT) reported net income for the three months ended Sept. 30, 1993, of $11,404,000 or $.78 per share, vs. $8,681,000 or $.70 per share for the same period last year. Also for the third quarter of 1993, income before tax and cumulative effect of accounting change was $17,466,000, compared to $12,221,000 for the third quarter of 1992, a 43 percent increase. For the nine months ended Sept. 30, 1993, income before cumulative effect of accounting change was $30,760,000 or $2.28 per share compared to $25,274,000 or $2.03 per share for the like period a year ago. In February 1992, the Financial Accounting Standards Board issued a new standard for accounting for income taxes, Financial Accounting Standard No. 109 ("FAS 109"). The company adopted FAS 109 as of Jan. 1, 1992, and accordingly, net income for the nine months of 1992 reflects a one-time increase of $43.5 million or $3.50 per share. Net income for the nine months of 1993 was $30,760,000 or $2.28 per share vs. $68,783,000 or $5.53 per share for the nine months of 1992.
 The company generated revenues of $167,143,000 in the third quarter of 1993, as compared to $163,847,000 for the corresponding prior year period. This 2 percent increase is primarily due to higher workers' compensation insurance premiums and higher loan interest income in the financial services business segment offset by lower realized investment gains. Realized investment gains in the third quarter were $423,000 vs. $11,777,000 in the same quarter of 1992. At the conclusion of the third quarter, the company had an unrealized gain in its investment portfolio of approximately $55,000,000.
 Workers' compensation insurance operations posted pre-tax income of $12,650,000 for the third quarter of 1993 as compared to $10,952,000 for the third quarter of 1992, a 16 percent increase. The improvement in earnings can be related to a 9 percent increase in net premiums earned, a continuing decline in the frequency of reported claims, and a reduction in underwriting expenses. The third quarter combined ratio for 1993 was 101.7 percent vs. 111.5 percent for the like period a year ago.
 The financial services business segment posted a 54 percent increase in third quarter pre-tax income. This segment, which includes thrift, commercial finance, and life insurance operations, recorded pre-tax income for the third quarter of $6.0 million vs. $3.9 million for the third quarter of 1992.
 Fremont General Corp. is a holding company, engaged through subsidiaries, in select insurance and financial service businesses.
 FREMONT GENERAL CORP.
 Selected Financial Data
 (Thousands of dollars, except per share data)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Income Statement Data:
 Net premiums earned $121,834 $113,750 $357,323 $323,408
 Net investment income 19,735 16,794 55,766 52,860
 Loan interest income 22,152 19,180 63,799 53,479
 Realized investment gains 423 11,777 2,526 15,408
 Other revenue 2,999 2,346 8,519 6,348
 Total revenues 167,143 163,847 487,933 451,503
 Property and casualty
 income 13,083 11,204 38,006 31,838
 Financial services income 6,024 3,917 15,102 11,091
 Other interest and
 corporate expense (1,641) (2,900) (6,302) (7,075)
 Income before tax and
 cumulative effect of
 accounting change 17,466 12,221 46,806 35,854
 Income tax (expense) (6,062) (3,540) (16,046) (10,580)
 Income before cumulative
 effect of
 accounting change 11,404 8,681 30,760 25,274
 Cumulative effect of
 accounting change for
 income taxes --- --- --- 43,509
 Net income $11,404 $8,681 $30,760 $68,783
 Per Share Data(a):
 Net income before cumulative
 effect of accounting change
 Primary $0.78 $0.70 $2.28 $2.03
 Fully diluted 0.71 0.63 2.07 1.84
 Net income
 Primary 0.78 0.70 2.28 5.53
 Fully diluted 0.71 0.63 2.07 4.77
 Cash dividends declared 0.18 0.17 0.54 0.49
 Stockholders' equity $23.40 $21.45 $23.40 $21.45
 Weighted Average Shares Used to
 Calculate Per Share Data(a):
 Primary 14,548 12,441 13,482 12,430
 Fully diluted 16,924 14,848 15,878 14,848
 Operating Ratios for Property and
 Casualty Insurance Subsidiaries:
 Loss ratio 70.3 pct 90.0 pct 70.4 pct 82.7 pct
 Expense ratio 21.0 pct 21.0 pct 21.0 pct 21.8 pct
 Policyholders' dividend
 ratio 10.0 pct 0.0 pct 10.0 pct 2.4 pct
 Total combined ratio 101.3 pct 111.0 pct 101.4 pct 106.9 pct
 (a) Adjusted for a 3-for-2 split effective 6/17/93.
 FREMONT GENERAL CORP.
 Selected Financial Data
 (Thousands of dollars, except per share data)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Property and Casualty
 Insurance Operating Data:
 Workers' compensation:
 Net premiums written $109,992 $100,413 $332,405 $266,900
 Net premiums earned 110,404 101,021 325,336 283,860
 Net investment income
 and other(a) 14,481 22,547 42,227 53,084
 Underwriting profit (loss) (1,831) (11,595) (5,737) (22,230)
 Net income before taxes $12,650 $10,952 $36,490 $30,854
 Loss ratio 70.6 pct 91.0 pct 70.7 pct 83.9 pct
 Expense ratio 20.4 pct 20.5 pct 20.5 pct 21.3 pct
 Policyholders'
 dividend ratio 10.7 pct 0.0 pct 10.6 pct 2.6 pct
 Total combined ratio 101.7 pct 111.5 pct 101.8 pct 107.8 pct
 Medical malpractice:
 Net premiums written $6,046 $8,033 $19,066 $23,015
 Net premiums earned 6,541 7,677 18,398 22,577
 Net investment income 1,150 1,931 3,510 3,831
 Underwriting profit (loss) 1,345 779 3,919 4,557
 Net income before taxes $2,495 $2,710 $7,429 $8,388
 Loss ratio 58.3 pct 70.9 pct 57.0 pct 60.3 pct
 Expense ratio 21.1 pct 19.0 pct 21.7 pct 19.5 pct
 Total combined ratio 79.4 pct 89.9 pct 78.7 pct 79.8 pct
 (a) Includes:
 Realized investment gains $35 $9,757 $2,009 $12,645
 Interest expense $504 $736 $1,623 $1,826
 -0- 10/20/93
 /CONTACT: W.R. Bailey, Fremont General, 310-315-5500/
 (FMT)


CO: Fremont General Corp. ST: California IN: FIN SU: ERN

LS-MF -- LA012 -- 4433 10/20/93 09:31 EDT
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Publication:PR Newswire
Date:Oct 20, 1993
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